Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. mountain high ice cream company transferred $79,00

Mountain High Ice Cream Company transferred $79,000 of accounts receivable to the...

60.1K

Verified Solution

Question

Accounting

Mountain High Ice Cream Company transferred $79,000 of accounts receivable to the Prudential Bank. The transfer vas made with recourse. Prudential remits 90% of the factored amount to Mountain High and retains 10% to cover ales returns and allowances. When the bank collects the receivables , it will remit to Mountain High the retained amount (which Mountain estimates has a fair value of $6,900)Mountain High anticipates a $4,900 recourse bligation. The bank charges a 3% fee (3% of $ 79,000), and requires that amount to be paid at the start of the actoring arrangement .

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

case 47:THE TIMKEN COMPANY 5. If Timken decides to go forward with the acquisition, how should Timken...

Accounting
1.2K views

Pittman Company is a small but growing manufacturer of telecommunications equipment. The company has no sales...

Biology
1.2K views

Two properties of water are cohesion and adhesion Cohesion refers to water ability to O...

Physics
1.2K views

1 On a horizontal floor two identical cylindrical vessels A and B connected by a...

Geometry
1.2K views

Line RS bisects segment PQ at point R Find RQ if PQ 14 centimeter 3...

Basic Math
1.2K views

1 point Problem 8 The distance d of a point P to the line through...

Basic Math
1.2K views

instruct the Lagrange s interpolation formula b Use the table below to evaluate the formula...

Algebra
1.2K views

1 2 10 4d 22 a Show algebraic steps to solve the inequality b Draw...

Accounting
1.2K views

Problem 24-55 (LO 24-4) [The following information applies to the questions displayed below.]...

Finance
1.2K views

Two years ago Z XY deposited $1,420 in an account that has earned and wil...

Accounting
1.2K views

Newton Company is considering the purchase of an asset that will provide a depreciation tax...

Finance
1.2K views

Companies with excess cash often employ share repurchase plans in place of or along with...