Question
Sheridan Corporation factored, with recourse, $205000 of accounts receivable with Cheyenne financing. the finance charge is 3%, and 5% was retained to cover sales discounts,
Sheridan Corporation factored, with recourse, $205000 of accounts receivable with Cheyenne financing. the finance charge is 3%, and 5% was retained to cover sales discounts, sales returns and sales allowances. Sheridan estimates the recourse obligations at $4920. What amount should Sheridan report as a loss on the sale of receivables?
1. $0
2. $11070
3. $6150
4.$ 21320
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Auditing And Assurance Services A Systematic Approach
Authors: William Messier, Steven Glover, Douglas Prawitt
12th Edition
1264100671, 978-1264100675
