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Please record Assignment of Accounts Receivable based on data below: Feb. 28 1. Record purchase of 110,000.00 inventory on account 2. Sell inventory for 250,000.00
| Please record Assignment of Accounts Receivable based on data below: | ||||
| Feb. 28 | ||||
| 1. Record purchase of | 110,000.00 | inventory on account | ||
| 2. Sell inventory for | 250,000.00 | on account | ||
| COGS | 100,000 | |||
| 1-Mar | ||||
| 3. Assign | 175,000.00 | in receivables, discount rate | 0.30 | |
| fee | 0.08 | Monthly interest | 0.04 | |
| 4. Settle trade accounts payable of | 110,000.00 | in full | ||
| 31-Mar | ||||
| 5. Record receipt of | 60,000.00 | cash | ||
| Adjust assigned receivables and make payment to lender | ||||
| 30-Apr | ||||
| 6. Record receipt of | 50,000.00 | cash | ||
| Adjust assigned receivables and make payment to lender | ||||
| 31-May | ||||
| 7. Record receipt of | 35,000.00 | cash | ||
| Adjust assigned receivables and make payment to lender | ||||
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Financial Accounting Theory And Analysis Text Readings And Cases
Authors: Richard G. Schroeder, Myrtle W. Clark, Jack M. Cathey
8th Edition
0471652431, 9780471652434
