Swifty Inc. transferred $704,000 of its accounts receivable to Independent Trust on November 1, 2020,...
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Swifty Inc. transferred $704,000 of its accounts receivable to Independent Trust on November 1, 2020, receiving 95% of the receivables balance as proceeds, with the other 5% representing a finance charge. The agreement specified that the receivables would become the property of Independent Trust, and Independent Trust could manage the receivables or resell them as it wished. In addition, the agreement specified that Swifty would have no right to repurchase the receivables from Independent, and included a recourse provision with an estimated value of $18,100. Swifty follows ASPE.
Question 1 ) Provide Journal Entries
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