Question
The Oriole Company factors $3,250,000 of its non-recourse accounts receivable for a 3% finance charge. The financial company retains an amount equivalent to 7% of
The Oriole Company factors $3,250,000 of its non-recourse accounts receivable for a 3% finance charge. The financial company retains an amount equivalent to 7% of the accounts receivable for possible adjustments. Oriole estimates the fair value of the recourse liability at $330,000.
What would be the debit to Cash in the journal entry to record this transaction?
Step by Step Solution
3.45 Rating (158 Votes )
There are 3 Steps involved in it
Step: 1
To record the factoring of nonrecourse accounts receivable with a finance charge and a ...
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
Intermediate Accounting
Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,
10th Canadian Edition, Volume 1
978-1118735329, 9781118726327, 1118735323, 1118726324, 978-0176509736
