Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on january 10, 2021, new age designs ltd. factored

On January 10, 2021, New Age Designs Ltd. factored receivables with a carrying amount of...

70.2K

Verified Solution

Question

Accounting

image
On January 10, 2021, New Age Designs Ltd. factored receivables with a carrying amount of $362,600 with Classic Finance Company. Classic Finance Company assessed a finance charge of 5% of the receivables and retained 3% of the receivables. New Age Designs follows ASPE, and has a year end of August 31. Required: 1. Prepare the journal entry required on the books of New Age Designs on January 10, 2021 for the disposal of the receivables. Assume that the receivables are factored on a without recourse basis. (2 marks) 2. Prepare the journal entry required on the books of New Age Designs on January 10, 2021 for the disposal of the receivables. Assume that the receivables are factored on a with recourse basis, and that the recourse obligation has a fair value of $7.150

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

Biology
1.2K views

a) In three sentences, describe the process of fertilization in humans. b) What prevents polyspermy?

Biology
1.2K views

1. Suppose that you isolated an enveloped icosahedral RNA virus. Purified RNA from this virus is capable...

Physics
1.2K views

A box of mass 18.0 kg sits at rest on a horizontal surface. The coefficient of...

Psychology
1.2K views

Note:Subject:EC110/EEC1202 Section 02 Early Childhood Education Curriculum and Instructionn but I choose Pschology to be easy. In...

Basic Math
1.2K views

O Bivariate and Quantitative O Bivariate and Categorical Univariate and Quantitative O Univariate and Categorical...

Basic Math
1.2K views

From generation to generation, the mean agewhen smokers first start to smoke varies.However, the standard...

Basic Math
1.2K views

9) The equation of a line L? is y = 1.5x + p. The point...

Algebra
1.2K views

Which binomial expressions are factors of 5x3 8x 7x 6 Select each correct answer O...

Accounting
1.2K views

please help! thank u so much! Required: Prepare...

Accounting
1.2K views

Assume that Wildhorse Manufacturers had a 1-for-10 reverse stock split instead of a 10% stock...

Finance
1.2K views

If the opportunity cost of capital is 11%, and you have unlimited access to the...

Accounting
1.2K views

A firm has two inputs: X and Y. The firm understands these inputs to be...