Question

Martinez Corp. factors $705,000 of accounts receivable with Tamarisk, Inc., Inc. on a with recourse basis....

Martinez Corp. factors $705,000 of accounts receivable with Tamarisk, Inc., Inc. on a with recourse basis. Tamarisk, Inc. will collect the receivables. The receivable records are transferred to Tamarisk, Inc. on August 15, 2020. Tamarisk, Inc. assesses a finance charge of 2.0% of the amount of accounts receivable and also reserves an amount equal to 5.00% of accounts receivable to cover probable adjustments. Martinez prepares financial statements under ASPE. Assume the conditions for to be recorded as a sale are met. Prepare the journal entry on August 15, 2020, for Martinez to record the sale of receivables, assuming the recourse obligation has a fair value of $7,100. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Nash Corp. factors $365,000 of accounts receivable with Crane Finance Corporation on a without recourse basis...
Nash Corp. factors $365,000 of accounts receivable with Crane Finance Corporation on a without recourse basis on July 1, 2017. The receivables records are transferred to Crane Finance, which will receive the collections. Crane Finance assesses a finance charge of 1.50% of the amount of accounts receivable and retains an amount equal to 6% of accounts receivable to cover sales discounts, returns, and allowances. The transaction is to be recorded as a sale. Prepare the journal entry on July 1,...
Sarasota Incorporated factored $167,400 of accounts receivable with Ivanhoe Factors Inc. on a without-recourse basis. Ivanhoe...
Sarasota Incorporated factored $167,400 of accounts receivable with Ivanhoe Factors Inc. on a without-recourse basis. Ivanhoe assesses a 2% finance charge of the amount of accounts receivable and retains an amount equal to 7% of accounts receivable for possible adjustments. Prepare the journal entry for Sarasota Incorporated and Ivanhoe Factors to record the factoring of the accounts receivable to Ivanhoe. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account...
Riverbed Incorporated factored $139,300 of accounts receivable with Marin Factors Inc. on a without-recourse basis. Marin...
Riverbed Incorporated factored $139,300 of accounts receivable with Marin Factors Inc. on a without-recourse basis. Marin assesses a 3% finance charge of the amount of accounts receivable and retains an amount equal to 5% of accounts receivable for possible adjustments. Prepare the journal entry for Riverbed Incorporated and Marin Factors to record the factoring of the accounts receivable to Marin. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account...
1. Nash Inc. factors receivables with a carrying amount of $247,900 to Joffrey Company for $172,700...
1. Nash Inc. factors receivables with a carrying amount of $247,900 to Joffrey Company for $172,700 on a with recourse basis. The recourse provision has a fair value of $1,640. This transaction should be recorded as a sale. Prepare the appropriate journal entry to record this transaction on the books of Nash Inc. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount...
Cheyenne Incorporated factored $133,800 of accounts receivable with Ayayai Factors Inc. on a without-recourse basis. Ayayai...
Cheyenne Incorporated factored $133,800 of accounts receivable with Ayayai Factors Inc. on a without-recourse basis. Ayayai assesses a 2% finance charge of the amount of accounts receivable and retains an amount equal to 6% of accounts receivable for possible adjustments. Prepare the journal entry for Cheyenne Incorporated and Ayayai Factors to record the factoring of the accounts receivable to Ayayai. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account...
Question 80.5/1 View Policies Show Attempt History Current Attempt in Progress Shamrock Corp. factors $370,000 of...
Question 80.5/1 View Policies Show Attempt History Current Attempt in Progress Shamrock Corp. factors $370,000 of accounts receivable with Bridgeport Finance Corporation on a without recourse basis on July 1, 2020. The receivables records are transferred to Bridgeport Finance, which will receive the collections. Bridgeport Finance assesses a finance charge of 1.70% of the amount of accounts receivable and retains an amount equal to 6% of accounts receivable to cover sales discounts, returns, and allowances. The transaction is to be...
Arness Woodcrafters sells $300,000 of receivables to Commercial Factors, Inc. on a with recourse basis. Commercial...
Arness Woodcrafters sells $300,000 of receivables to Commercial Factors, Inc. on a with recourse basis. Commercial assesses a finance charge of 6% and retains an amount equal to 3% of accounts receivable. Arness estimated the fair value of the recourse obligation to be $8,000. Prepare the journal entry for (a) Arness and (b) Commercial Factors
1. Arness Woodcrafters sells $300,000 of receivables to Commercial Factors, Inc. on a with recourse basis....
1. Arness Woodcrafters sells $300,000 of receivables to Commercial Factors, Inc. on a with recourse basis. Commercial assesses a finance charge of 6% and retains an amount equal to 3% of accounts receivable. Arness estimates the fair value of the recourse obligation to be $8,000. Prepare the journal entry for (a) Arness and (b) Commercial Factors.
To raise more liquidity, Randy Corp. factored $70,000 of its accounts receivable with Mock Bank with...
To raise more liquidity, Randy Corp. factored $70,000 of its accounts receivable with Mock Bank with recourse on 1/1/2018. Mock Bank agreed to collect the accounts receivable after the transaction, assessed a finance charge of 2% of the amount transferred and withheld an amount equal to 3% of the amount to cover probable uncollectible accounts. Randy prepared financial statements under ASPE. Assume the transaction qualified for the sale of receivables treatment. The recourse obligation had a fair value of $3,000....
To raise more liquidity, Randy Corp. factored $70,000 of its accounts receivable with Mock Bank with...
To raise more liquidity, Randy Corp. factored $70,000 of its accounts receivable with Mock Bank with recourse on 1/1/2018. Mock Bank agreed to collect the accounts receivable after the transaction, assessed a finance charge of 2% of the amount transferred and withheld an amount equal to 3% of the amount to cover probable uncollectible accounts. Randy prepared financial statements under ASPE. Assume the transaction qualified for the sale of receivables treatment. The recourse obligation had a fair value of $3,000....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT