Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. accounts receivable in the amount of $680,000 were

Accounts receivable in the amount of $680,000 were assigned to the Fast Finance Company by...

80.2K

Verified Solution

Question

Accounting

Accounts receivable in the amount of $680,000 were assigned to the Fast Finance Company by Bramble, Inc., as security for a loan of
$576,000. The finance company assessed a 4% finance charge on the face amount of the loan, and the note bears interest at 8% per
year.
During the first month, Bramble collected $360,000 on assigned accounts. This amount was remitted to the finance company along
with one month's interest on the note.
Make all the entries for Bramble Inc. associated with the transfer of the accounts receivable, the loan, and the remittance to the
finance company. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries
before credit entries.)
Account Titles and Explanation
Debit
Credit
(To record the transfer of the accounts receivable.)
(To record the loan amount collected.)
image

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