Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on 7/1/x1 miller photography borrows $700,000 from

On 7/1/X1 Miller photography borrows $700,000 from M&B Bank. as part of the agreement, miller...

80.2K

Verified Solution

Question

Accounting

On 7/1/X1 Miller photography borrows $700,000 from M&B Bank. as part of the agreement, miller assigns $800,000 of specific AR as collateral. if the loan is not paid, M&B has the right to convert the AR to cad(take control of it and collect AR). Miller will continue to collect AR. At the end of the month, Miller will remit the amount of AR collected plus 6% interest on the unpaid balance back to M&B, which is the prevailing rate for firms as credit worthy as Miller. M&B charges 2% of the assigned AR as a finance charge.

Assume cash collections during July equal $160,000 and cash collections during August equal $100,000. prepare any journal entries to record the remittance of august's cash collections to the bank.

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

Physics
1.2K views

A4μCchargeisplacedatthepoint⃗r1 =2ˆicmandan-4μCchargeisplacedat ⃗r2 = −2 ˆi cm. The charges do not move. a. What is the...

Physics
1.2K views

The total length of a sonometer wire between fixed ends is 110 cm Two bridges...

Calculus
1.2K views

The function f is defined as follows f x 2x 3 O A if 3...

Accounting
1.2K views

Interstate Manufacturing is considering either overhauling an old machine or replacing it...

Accounting
1.2K views

NG HW Ch 11 Question 2 (of 9) 1.25 points The management of Kunkel Company...

Accounting
1.2K views

Description 1. Select a stadium from the list located at the following website: American Football...

Accounting
1.2K views

Olive Tree Products sold 86,000 units during the last period when industry volume totaled 334,000...

Accounting
1.2K views

On April 1, 2016, the premium on a one-year insurance policy was purchased for $2,400...

Accounting
1.2K views

Delta Airlines Ratio Analysis Input Worksheet Gray cells will be calculated for you....

Finance
1.2K views

Find the value of Caspian Sea Corp. assuming corporate taxes: ke=9.7% kd=5% It currently has...

Finance
1.2K views

The Full of Bull Cattle Company in Bozo, Nevada purchased an Angus bull for $3,000....

Finance
1.2K views

A company will sell Gizmos to consumers at a price of $102 per unit. The...