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Presented below is information for Marin Company. 1. Beginning-of-the-year...

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Accounting

Presented below is information for Marin Company.

1. Beginning-of-the-year Accounts Receivable balance was $17,200.
2. Net sales (all on account) for the year were $107,600. Marin does not offer cash discounts.
3. Collections on accounts receivable during the year were $89,500.

Marin is planning to factor some accounts receivable at the end of the year. Accounts totaling $13,900 will be transferred to Credit Factors, Inc. with recourse. Credit Factors will retain 6% of the balances for probable adjustments and assesses a finance charge of 5%. The fair value of the recourse obligation is $1,038.

A. Prepare the journal entry to record the sale of the receivables. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

B. Compute Marins accounts receivable turnover for the year, assuming the receivables are sold. (Round answers to 2 decimal places, e.g. 4.57.)

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