Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. accounts receivable in the amount of $500,000 were

Accounts receivable in the amount of $500,000 were assigned to Grey Finance Company by Park...

60.1K

Verified Solution

Question

Accounting

Accounts receivable in the amount of $500,000 were assigned to Grey Finance Company by Park

Inc. as collateral for a loan of $400,000. Grey charged a 1% finance fee on the accounts receivable

assigned and the interest rate on the note is 12%. During the month, Park collected $300,000

of the assigned accounts receivable and remitted this amount to Grey along with accrued interest.

Prepare the necessary journal entries to record the borrowing, the assignment of receivables, the

collection of the receivables, and the recognition of interest expense

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

8. Factors that influence dividend policy Dividend distribution decisions are complicated and involve the understanding of critical...

Psychology
1.2K views

The Working Stage of the group is active for members. Leaders need to develop and introduce...

Physics
1.2K views

In potentiometer two cells are connected in such a way that the first time they...

Physics
1.2K views

An object and a screen are kept at a distance 120 cm A lens of...

Calculus
1.2K views

The base of a three dimensional figure is bound by the line y x on...

Calculus
1.2K views

Evaluate the following integral 2 sipx IIT siny dz dx dy 000 x 2 sipx...

Algebra
1.2K views

Suppose you owe 400 on your credit card and you decide to make no new...

Algebra
1.2K views

Divide the following polynomials using any method of your choosing 2 16x 3 x 4...

Accounting
1.2K views

You have just been hired as a new management trainee by Earrings Unlimited, a...

Accounting
1.2K views

will give the biggest thumbs up for help with this hw assignment Sales Forecast:...

Accounting
1.2K views

prepare the company's 2019 income statement that reports separate categories for a selling expense and...

Finance
1.2K views

Which of the following is an example of a lending investment: Bonds, Stocks, Homes, Antiques?