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Samson Wholesale Beverage Company regularly factors its accounts receivable with the Milpitas Finance Company. On...

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Accounting

Samson Wholesale Beverage Company regularly factors its accounts receivable with the Milpitas Finance Company. On April 30,2024, the company transferred $940,000 of accounts receivable to Milpitas. The transfer was made without recourse. Milpitas remits 90% of the factored amount and retains 10%. When Milpitas collects the receivables, it remits to Samson the retained amount less a 5% fee (5% of the total factored amount). Samson estimates the fair value of the last 10% of its receivables to be $74,000.
Required:
Prepare the journal ehtry for Samson Wholesale Beverage for the transfer of accounts receivable on April 30, assuming the sale criteria are met.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Journal entry worksheet
1
Record the transfer of accounts receivable on April 30.
Note: Enter debits before redits.
\table[[Event,General Journal,Debit,Credit],[1,,,],[,,,],[,,,],[,,,],[,,,],[,,,]]
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