The September 30, 2018 balance sheet of ABC Corporationdisclosed the following information relating to...

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Accounting

The September 30, 2018 balance sheet of ABC Corporationdisclosed the following information relating to itsreceivables:
Accounts Receivable(net of $18,000 allowance) $342,000
ABC prepares quarterly financial statements. The followingoccurred during the fourth quarter of 2018:
1. During the 4th quarter, ABC had credit salesof $2,600,000 and collections on accounts receivable (general) of$2,300,000. Uncollectible accounts totaling $19,000 were writtenoff, and a $2,600 accounts receivable previously written off wascollected (not included in the $2,300,000 of cash collectionsreported above.)
2. On November 1, ABC assigned $300,000 ofaccounts receivable to Quicken Finance on a non-notification basis.Quicken advanced ABC cash proceeds for 85% of the accountsassigned, less a finance fee of $5,000, in exchange for aninterest-bearing note. The note incurs interest at 1% per month onthe outstanding loan balance. Cash collections from these assignedaccounts are to be remitted monthly to Quicken Finance and includeaccrued interest (i.e. the cash collected each month must be usedto repay both principal and interest on the note.)
During November, ABC collected $150,000 on assigned accounts.ABC also accepted sales returns of $2,000. The November collectionswere remitted to Quicken on November 30th and included accruedinterest for the month.
During December, ABC wrote off $3,000 of assigned accounts asuncollectible. By December 31st, assigned accounts of $80,000 werecollected in cash. These cash collections were remitted to QuickenFinance on December 31, 2018, and included accrued interest forDecember.
3. On December 31, 2018, ABC estimates 5% oftotal accounts receivable and accounts receivable assigned to beuncollectible.
a) Determine how muchInterest Expense ABC would report on their quarterly incomestatement for the period 10/1 - 12/31/18 from the assigningtransaction:

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ACCOUNTS ASSIGNED ON 1 NOV 300000 FINANCED AMOUNT 85 255000 LESS FINANCE FEE 5000 PAID AMOUNT 250000 AMOUNT COLLECTED IN NOV 150000 INTEREST ACCRUED FOR NOV 1 OF 255000 2550 AMOUNT REPAID See Answer

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In: AccountingThe September 30, 2018 balance sheet of ABC Corporationdisclosed the following information relating to its...The September 30, 2018 balance sheet of ABC Corporationdisclosed the following information relating to itsreceivables:Accounts Receivable(net of $18,000 allowance)$342,000ABC prepares quarterly financial statements. The followingoccurred during the fourth quarter of 2018:1. During the 4th quarter, ABC had credit salesof $2,600,000 and collections on accounts receivable (general) of$2,300,000. Uncollectible accounts totaling $19,000 were writtenoff, and a $2,600 accounts receivable previously written off wascollected (not included in the $2,300,000 of cash collectionsreported above.)2. On November 1, ABC assigned $300,000 ofaccounts receivable to Quicken Finance on a non-notification basis.Quicken advanced ABC cash proceeds for 85% of the accountsassigned, less a finance fee of $5,000, in exchange for aninterest-bearing note. The note incurs interest at 1% per month onthe outstanding loan balance. Cash collections from these assignedaccounts are to be remitted monthly to Quicken Finance and includeaccrued interest (i.e. the cash collected each month must be usedto repay both principal and interest on the note.)*During November, ABC collected $150,000 on assigned accounts.ABC also accepted sales returns of $2,000. The November collectionswere remitted to Quicken on November 30th and included accruedinterest for the month.*During December, ABC wrote off $3,000 of assigned accounts asuncollectible. By December 31st, assigned accounts of $80,000 werecollected in cash. These cash collections were remitted to QuickenFinance on December 31, 2018, and included accrued interest forDecember.3. On December 31, 2018, ABC estimates 5% oftotal accounts receivable and accounts receivable assigned to beuncollectible. a) Determine how muchInterest Expense ABC would report on their quarterly incomestatement for the period 10/1 - 12/31/18 from the assigningtransaction: