Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. lincraft corp. reports a current ratio of 3-to-1 i

Lincraft Corp. reports a current ratio of 3-to-1 in its 202 financial statements....

50.1K

Verified Solution

Question

Accounting

Lincraft Corp. reports a current ratio of 3-to-1 in its 202 financial statements. The statement of financial position shows current assets of $3,125,500 and current liabilities of $1,049,100. Lincraft has accounts recelvable of $1,279,300. The company transfers $982,000 of these accounts recelvable to a financial institution. There are $34,200 of bad debts associated with these accounts receivable, an amount that is already in the allowance for doubtful accounts. Proceeds of $892,750 are recelved from the transfer. The transfer is on a non-notification basis, which means that the customers pay Lincraft and Lincraft then remit the cash to the financial institution. The customers pay $940,000 to Lincraft on schedule, $34,200 is written off to the allowance at the appropriate time, and the cash remittance is forwarded to the financial institution.
Required:
Record all journal entries for the sequence of events assuming:
a. The transfer is recorded as a borrowing.
i fill the table,but it says that the table is wrong. can explain why the table is wrong
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

Finance
1.2K views

Gasworks, Inc., has been approached to sell up to 3.4 million gallons of gasoline in three months...

Statistics
1.2K views

Assume the monthly price change per share of Tencent follows a normal distribution with μ=2.8 and...

Biology
1.2K views

Many emerging infectious diseases are zoonotic diseases and tracking down viral origins and reservoirs can be...

General Management
1.2K views

Check the Internet to find information about "safety culture." Examine a few Web sites related to...

Physics
1.2K views

2 Find the electric potential of the conductor in the form of a circular loop...

Basic Math
1.2K views

On a dogleg golf hole, one golfer hits the ball 270 yards and then another...

Algebra
1.2K views

Which function displays this end behavior As x approaches negative infinity y approaches negative infinity...

Accounting
1.2K views

Auditing Question 28 (4 points) Listen You are reviewing a...

Accounting
1.2K views

Cost of Production Report: No Beginning Inventories Howell Paving Company manufactures asphalt paving materials...

Accounting
1.2K views

Standard Product Cost, Direct Materials Variance Condiments Company uses standards to control its materials costs....

Accounting
1.2K views

PLEASE SHOW ALL WORK/CALCULATIONS AND FORMULAS IN EXCEL IF POSSIBLE. 2 (10 points). Jar...

Accounting
1.2K views

Widhorse Company uses a periodic inventocy system and reports the following for the month of...