Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. d. debit to accounts receivable for $20,000 11. mo

D. Debit to Accounts Receivable for $20,000 11. Mountain High Ice Cream Company transferred $60,000...

70.2K

Verified Solution

Question

Accounting

image
D. Debit to Accounts Receivable for $20,000 11. Mountain High Ice Cream Company transferred $60,000 of accounts receivable to the Prudential Bank.T transfer was made without recourse. Prudential remits 90% of the factored amount to Mountain High and ret 10%. When the bank collects the receivables, it will remit to Mountain High the retained amount less a 2% f of the total factored amount). The journal entry to record the transfer on the books of Mountain High assumi the sale criteria are met includes: A. A credit to Loss on Sale of Accounts Receivable of $1,200, B. C. D. A credit to Recourse Liability of $1,200. A credit to Accounts Receivable of $60,000. A debit to Cash of $60,000

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