Problem 3 (22 points) A On May 1, 2021, White Company assigns $250,000 of its accounts receivable to Hometown Bank as collateral for a $225,000 note. The bank assesses a finance charge of 4% of the receivables assigned and interest on the note of 8%. Prepare the May 1 journal entry for White and Hometown Bank White Company Hometown Bank B. On October 29, 2021, Thayer, Inc. sold $800,000 of accounts receivable to Lifetime Factors on a without recourse basis. Lifetime assesses a 3% finance charge of the amount of accounts receivable and retains an amount equal to 6% of accounts receivable for possible adjustments. Prepare the journal entries on October 31, 2021 for both Thayer, Inc Lifetime Factors C Assume that Thayer, Inc. sold the accounts receivable on a with recourse basis Prepare the journal entry on Thayer, Inc.'s books on October 29, 2021. The recourse liability is $10,000 Thayer, Inc Periods PWN- 5% 1.05000 1.10250 1.15763 1 21551 1.27628 1.62889 2.07893 2 65330 69 1.06000 1 12360 1.19102 1.26248 1 33823 1.79085 2 39656 320714 Future Value of $1 9% 10% 1.09000 1. 10000 1.18810 1.21000 1.29503 1.33100 1.41158 1.46410 1 53862 1.61051 2 36736 2.59374 3.64248 4.17725 5.60441 6.72750 12% 1. 12000 1.25440 1.40493 1 57352 1.76234 3.10585 5.47357 9 64629 10 15 20 Periods 1 5% 0.95238 0.90703 0.86384 0.82270 0.78353 0.61391 0.48102 0.37689 Present Value of $1 6% 9% 10% 0.94340 0.91743 0.90909 0.89000 0.84168 0.82645 0.83962 0.77218 0.75132 0.79209 0.70843 0.68301 0.74726 0.64993 0.62092 055839 0.42241 0.38554 0.41727 0.27454 0.23939 0.31180 0.17843 0.14864 12% 0.89286 0.79719 0.71178 0.63552 0.56743 0.32197 0.18270 0.10367 10 15 20 Periods 1 2 3 4 5 10 15 20 5% 1.00000 2 05000 3.15250 4.31013 5.52563 12.57789 21.57856 33.06595 Future Value of an Ordinary Annuity of 1 6% 9% 10% 1.00000 1.00000 1.00000 2.06000 2.09000 2.10000 3.18360 3.27810 3.31000 4.37462 4.57313 4.64100 5.63709 5.98471 6.10510 13.18079 15.19293 15.93743 23 27597 29.36092 31.77248 36.78559 51.16012 57 27500 12% 1.00000 2.12000 3.37440 4.77933 6.35285 17.54874 37.27972 72.05244 Periodic Rents 1 2 3 4 5 10 15 20 5% 0.95238 1.85941 2.72325 3.54595 4.32948 7.72173 10.37966 12.46221 Present Value of an Ordinary Annuity of 1 6% 9% 10% 0.94340 0.91743 0.90909 1.83339 1.75911 1.73554 2.67301 2.53130 2.48685 3.46511 3.23972 3.16986 4.21236 3.88965 3.79079 7.36009 6.41766 6.14457 9.71225 8.06069 7.60608 11.46992 9.12855 8.51356 12% 0.89286 1.69005 2.40183 3.03735 3.60478 5,65022 6.81086 7.46944
