Question #5 On December 31 Company XYZ performed services for Customer A and accepted a $200,000 zero-interest bearing note due in 2 years. Company XYZ has the ability to borrow money at the bank at 6% but Customer A has some issues and their bank borrowing rate is 10%. Record the following (a) Entry at the time XYZ accepts the note (b) Entry at the time Customer A pays the debt to Company XYZ. I= Question # 6 Honest Corp. transfers all of its receivables (with a face value of $300,000) to ZZZ Factors on August 13. ZZZ Factors generally assesses a finance charge of 2% of the face value of the receivables and withholds an amount equal to 4% to cover any possible returns and allowances. The fair value of any recourse liability is $2,000. Record this transfer assuming that conditions are met to allow it to be recorded as a (a) transfer without recourse (b) transfer with recourse (c) sale (d) collateralized borrowing (e) transfer without recourse but Honest Corp. has an allowance for bad debts account of $9,000.

On December 31Company XYZ performed services for Customer A and accepted a $200,000 zero-interest bearing note due in 2 years. Company XYZ has the ability to borrow money at the bank at 6% but Customer A has some issues and their bank borrowing rate is 10%. Record the following (a) Entry at the time XYZ accepts the note (b) Entry at the time Customer A pays the debt to Company XYZ. Question \# 6 Honest Corp. transfers all of its receivables (with a face value of $300,000 ) to ZZZ Factors on August 13. ZZZZ Factors generally assesses a finance charge of 2% of the face value of the receivables and withholds an amount equal to 4% to cover any possible returns and allowances. The fair value of any recourse liability is $2,000. Record this transfer assuming that conditions are met to allow it to be recorded as a (a) transfer without recourse (b) transfer with recourse (c) sale (d) collateralized borrowing (e) transfer without recourse but Honest Corp. has an allowance for bad debts account of $9,000