Ask Question
22 October, 23:54

On March 3, Splish Brothers Inc. sells $666,900 of its receivables to National Factors Inc. National Factors Inc. assesses a service charge of its receivables to Western Factors Inc. Western Factors Inc. assesses a service charge of 5% of the amount of receivables sold. Prepare the entry on Sheridan Company books to record the sale of the receivables.

+4
Answers (1)
  1. 23 October, 00:38
    0
    cash 633,555 debit

    loss on factoring 33,345 debit

    accounts receivable 666,900 credit

    --to record sales of receivables--

    Explanation:

    666,900 x 5% fee = 33,345‬ factoring expense

    666,900 - 33,345 = 633,555‬ cash proceeds

    we will write-off the erceivable sold.

    We will increase our cash and recognize the loss on the factoring
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “On March 3, Splish Brothers Inc. sells $666,900 of its receivables to National Factors Inc. National Factors Inc. assesses a service charge ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers