22. On July 1, Year 10, Cabaret Corporation factored P80,000 of its accounts receivable without recourse to Playtime Company. Playtime retains 10% of the accounts receivables as an allowance for sales returns and charges a 5% commission on the gross amount of factored receivables. How much cash did Cabaret receive from factoring its receivables? a. 80,000 b. 72,000 c. 68,000 d. 76,000

22. On July 1, Year 10, Cabaret Corporation factored P80,000 of its accounts receivable without recourse to Playtime Company. Playtime retains 10% of the accounts receivables as an allowance for sales returns and charges a 5% commission on the gross amount of factored receivables. How much cash did Cabaret receive from factoring its receivables? a. 80,000 b. 72,000 c. 68,000 d. 76,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 10RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...

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On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan.
10. On March 1, 20X1 ABC Co. assigned its P1,000,000 accounts receivable to B Bank in exchange for a 2-month 12% loan equal to 75% of the assigned receivables. ABC received the loan proceeds after a 2% deduction for service fee based on the assigned receivables. During March, P500,000 were collected from the receivables. Sales returns amounted to P150,000. How much is the equity on the assigned receivables at March 31? 100,000 250,000 350,000 750,000
11. Using the following information: Accounts receivable Allowance Cash realizable value 12/31/17 P1,050,000 (90,000) P960,000 During 2018, sales on account were P290,000 and collections on account were P172,000. Also, during 2018, the company wrote off P16,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that uncollectible accounts should be estimated at P108,000. The change in the net realizable value from the balance at 12/31/17 to 12/31/18 was a a. P100,000 increase b. P84,000 increase c. P118,000 increase d. P102,000 increase
1. On March 1, 20X1 ABC Co. assigned its P1,000,000 accounts receivable to B Bank in exchange for a 2-month 12% loan equal to 75% of the assigned receivables. ABC received the loan proceeds after a 2% deduction for service fee based on the assigned receivables.. During March, P500,000 were collected from the receivables. Sales returns amounted to P150,000. How much cash is received from the assignment transaction on March 1? 730,000 735,000 1,230,000 1,235,000
2. On March 1, 20x1, ABC assigned its P4,000,000 accounts receivable to XYZ Bank in exchange for a 2-month, 12% loan equal to 75% of the assigned receivables. ABC received the loan proceeds after a 2% deduction for service fee based on the assigned notes. During March, P2,500,000 were collected from the receivables. Sales returns and discounts amounted to P50,000. By the end of March, equity on assigned accounts shall be The correct answer is: 950,000 REQUIRED: Provide the step-by-step solution.
Katok Company factored P 750,000 of accounts receivable at year end. Control was surrendered. The factor accepted the accounts receivable subject to recourse for non-payment. The factor assessed a fee of 2% and retained a hold back equal to 4% of the accounts receivable In addition, the factor charged 12% interest computed of 51 days. What is the amount of cash initially received from the factoring? a. 692,425b. 720,000c. 722,425d. 705,000
10- SK Inc, factors $400,000 of accounts receivable with Mars Finance Company on a without recourse basis on July 1,2020. The receivables records are transferred to Mars Finance, which will receive the collections. Mars Finance assesses a finance charge of 1 ½% of the amount of accounts receivable and retains an amount equal to 4% of accounts receivable to cover sales discounts, returns, and allowances. The transaction is to be recorded as a sale.Instructions:a) Prepare the journal entry on July1,2020, for SK Inc. to record the sale of receivables without recourse.b) Prepare the journal entry on July1,2020, for Mars Finance Company. to record the purchase of receivables without recou
16. Sun Inc. factors $2,000,000 of its accounts receivables without guarantee (recourse) for a finance charge of 4%. The finance company retains an amount equal to 6% of the accounts receivable for possible adjustments. Prepare the journal entry that is recorded by Sun. Inc. to record the sale of its receivables.
9. Company S purchased 1,000 units raw materials amounting to $5,000 and used $4,500 worth for the production during the current month. The standard price for these raw materials is $5.2 per unit. How much is the materials price variance for the current month if Company S analyzes the variance at the point of purchase? O $200 favorable O $200 unfavorable O $700 favorable O $700 unfavorable 10. T Corporation is authorized to issue 500,000 common stock at $10 par value. As of December 31, 2019 the corporation has 350,000 common stock issued and outstanding. On February 14, 2020, the market price of the stock is $17. On the same date, T Corporation acquired 50,000 stocks at $15. On March 5, 2020, the company reissued 25% of the treasury stocks at $20. Which of the following will be included in the entry to record the transaction on March 5, 2020? Debit Treasury Shares $187,500 Debit Common Stock $250,000 O Credit Additional Paid-in Capital $62,500 O Credit Cash $250,000
The following information relates to ReDo Corporation: $28,184,000 $316,199,000 $64,115,000 What ReDo's receivables collection period (DSO)? In your computations, assume there are 360 days in a year. 42.50 days O 72.99 days 32.09days Accounts receivable Total credit sales Accounts payable O 11.22days
45.Ping Company finances some of its current operations by factoring its accounts receivable to a finance company. On July 1, 2021, the company factored P2,000,000 of its accounts receivable to Atlas Finance Company. Purchase price was 85% of the receivables factored. Atlas withheld 5% of the purchase price as protection against sales returns and allowances.Sales returns recorded by Ping on the factored accounts receivable totaled P30,000; the balance of the factor’s holdback was settled by the finance company on August 31, 2021.What was the total cash received by Ping Company from this factored accounts after full settlement by the factor?
(8 Problems 1) On January 1, 2021, Cali Consulting has a $110,000 balance in accounts receivable and a $0 balance in the Allowance for Uncollectible Accounts. During 2021, Cali provides $205,000 of service on account. The company collected $190,000 cash from Accounts Receivable. Uncollectible accounts are estimated to be 3% of sales on account. a. What is the amount of uncollectible accounts expense recognized in 2021? b. What is the amount of cash flows from Operating activities that would appear on the 2021 Cash Flow statement? Show the impact (with amounts) of each of the following items on the horizontal C. Oquation. For the asset section, name the specific accounts impacted. i. Record Sales during the year on account of $205,000. ii. Show the impact of $190,000 cash collected during the year. ii. Establish an Allowance for Uncollectible Accounts at year-end. 3. Study guide - Chapter 5 (with solutions).docx O A 69°F P. f5 f12 6J prt sc I14 &