#2 Saber Boat Industries, Inc. sells factors) $840,000 of Account 3 Receivables with the Blue...
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#2 Saber Boat Industries, Inc. sells factors) $840,000 of Account 3 Receivables with the Blue Water Finance Company on a "with recourse" basis. Blue Water acquires the receivables on January 31, 2018 assessing a finance charge of 5%, and also reserving 8% for covering probable adjustments. In addition, a recourse liability amounting to a fair value of $15,000 is accrued a. Based on the contractual arrangement above, prepare the journal entry at January 31st for Distribution Industries, Inc. Debit Credit b. Village Marine provided you with the following financial information before adjustments as of December 31, 2017: Debit 103,764 407,680 Credit Cash Accounts Receivable Allowance For Doubtful Accounts Sales Revenue Sales Returns and Allowances 3,355 2,645, 090 16, 847 Prepare the vear end adjusting entry assuming that the allowance for doubtful accounts 13 to provide for doubtful accunts based on 2.5% of gross accounts receivable. Debit Credit
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