Question
Presented below is infor 1. 2. 3. Beginning-of-the-year Accounts Receivable balance was $19,300. Net sales (all on account) for the year were $107,800. Ayayai
Presented below is infor 1. 2. 3. Beginning-of-the-year Accounts Receivable balance was $19,300. Net sales (all on account) for the year were $107,800. Ayayai does not offer cash discounts. Collections on accounts receivable during the year were $87,200. Ayayal is planning to factor some accounts receivable at the end of the year. Accounts totaling $11,600 will be transferred to Credit Factors, Inc. with recourse. Credit Factors will retain 6% of the balances for probable adjustments and assesses a finance charge of 5%. The fair value of the recourse obligation is $1,070. Prepare the journal entry to record the sale of the receivables. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Compute Ayayai's accounts receivable turnover for the year, assuming the receivables are sold. (Round answers to 2 decimal places, eg.4.57.) Accounts receivable turnover Days to collect accounts receivable eTextbook and Media List of Accounts times days
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