Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. question 16 4 pts oler company is considering sell

Question 16 4 pts Oler Company is considering selling their accounts receivable with a carrying...

60.1K

Verified Solution

Question

Accounting

image
Question 16 4 pts Oler Company is considering selling their accounts receivable with a carrying amount of $10,000,000 to Skousen Company Skousen Company would assess a finance charge of 10% of the receivables and would retain 20% of the receivables to cover sales returns during Oler's 60-day money back guarantee period. Oler estimates that $500,000 of the sold receivables will become uncollectible. If the receivables were sold to Skousen on a without recourse basis, the journal entry on Oler's books would include: A Loss on Sale of Receivables for $1,000,000 A loss on Sale of Receivables for $1.500.000 A Loss on Sale of Receivables for $3,000,000 A Loss on Sale of Receivables for $3.500.000 Since Oler received cash in exchange for the receivables, no loss is recorded

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

US Commercial banks have traditionally earned most of thier money from: Collecting items from defaulting borrowers and...

Medical Sciences
1.2K views

17. The following results belong to a patient who visited his cardiologist: Systolic Blood Pressure: 127 Diastolic Blood...

Geometry
1.2K views

10 Find the area of the triangle Area 6cm 3cm cm

Basic Math
1.2K views

eason that best supports Statement 3 in the give proof A Subtraction Property of Equality...

Statistics
1.2K views

Questi a random sample of 28 families the hether a normal distribution or a t...

Algebra
1.2K views

Graph the function with a graphing utility 15 y 1 x x 1 2 20...

Algebra
1.2K views

20 Solve for x O 11 1 5 O 0 10 9 17 1211212 x...

Accounting
1.2K views

Question 5. The table below shows financial statements for Flex Inc. The Flex has reported...

Accounting
1.2K views

Question 4 (4 points) Linkin Corporation is considering purchasing a new delivery truck. The truck...

Accounting
1.2K views

Boyne University offers an extensive continuing education program in many cities throughout the state. For...

Accounting
1.2K views

An employee decided to invest $ 2,186 quarterly for seven years in an ordinary annuity...

Finance
1.2K views

Problem 4 (3 points): Assume that two zero-coupon bonds maturing in 210 days and in...