Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. logitech corporation transferred $175,000 of accou

Logitech Corporation transferred $175,000 of accounts receivable to a local bank. The transfer was made...

90.2K

Verified Solution

Question

Accounting

Logitech Corporation transferred $175,000 of accounts receivable to a local bank. The transfer was made without recourse. The local bank remits 90% of the factored amount to Logitech and retains the remaining 10%. When the bank collects the receivables, it will remit to Logitech the retained amount less a fee equal to 3% of the total amount factored. Logitech estimates a fair value of its 10% interest in the receivables of $15,500 (not including the 3% fee). What is the effect of this transaction on the companys assets, liabilities, and income before income taxes?

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

Statistics
1.2K views

About 5 of the population has a particular genetic mutation 900 people are randomly selecte...

Civil Engineering
1.2K views

George Jones  is a 45 year-old who has two felony convictions, one for robbery and one for...

Physics
1.2K views

Click to see additional instructions Questions 11 15 Shown here is the PT phase diagram...

Physics
1.2K views

9 In a resonance tube experiment tube has radius of 3 cm then its end...

Basic Math
1.2K views

Consider the following function.-2x-6 if x ? -311/2if x > -3Step 2 of 3: Identify...

Algebra
1.2K views

x find the function g g x Simplify your answer Use integers or fractions for...

Accounting
1.2K views

Division A manufactures electronic circuit boards. The boards can be sold either to...

Accounting
1.2K views

Below is a negative Tweet about your business. Please provide an appropriate response to this...

Accounting
1.2K views

does someone have a proposal reserach about an interesting topic that could share it with...

Accounting
1.2K views

Assignment 10-1B Case Study: Bright White Paper Company Bright White Paper Company manufactures various types...

Accounting
1.2K views

Problem 17-3A Applying activity-based costing LO P1, P3, A1, A2, C3 [The following information applies...

Accounting
1.2K views

Quick bites has a restaurant that is opened all day. Fixed costs total $450,000 per...