Journal entry of mays finance corporation

Assignment Help Accounting Basics

Reference no: EM13146607

SEK Corp. factors $400,000 of accounts receivable with Mays Finance Corporation on a without recourse basis on July 1, 2010. The receivables records are transferred to Mays Finance, which will receive the collections. Mays Finance assesses a finance charge of 1½% 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. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.)

(a) Prepare the journal entry on July 1, 2010, for SEK Corp. to record the sale of receivables without recourse.

(b) Prepare the journal entry on July 1, 2010, for Mays Finance Corporation to record the purchase of receivables without recourse.

Reference no: EM13146607

Questions Cloud

Reason for establishing internal audit function : Which of the following is generally considered to be a major reason for establishing an internal audit function?

A potato farmer bob agrees to sell 10,000 bags of potatoes : A potato farmer Bob agrees to sell 10,000 bags of potatoes and deliver them to "Save-a-Lot Supermarkets in yellow bags with green labels. When the potatoes arrive they have red labels, which the store considers will reduce the attractiveness o..

How many grams of carbon dioxide will be produced : C2H4 + 3O2 = 2CO2 + 2H2O If you start with 54 grams of ethylene (C2H4) how many grams of carbon dioxide will be produced?

Simulate problem using the monte carlo process : Simulate this problem using the Monte Carlo process. Show the demand during lead time (DDLT) for 30 reorders and determine the expected demand during lead time.

Journal entry of mays finance corporation : Prepare the journal entry on July 1, 2010, for SEK Corp. to record the sale of receivables without recourse. Prepare the journal entry on July 1, 2010, for Mays Finance Corporation to record the purchase of receivables without recourse.

Compute the number of moles of ascobic acid : Calculate the number of moles of Ascobic acid in the 50.00 ml Sample. Titration Volumes of KIO3 Initial Buret reading/ml trial 1=12.54 trial 2=8.78 Final buret reading/ trial 1=38.74 trial 2=34.93 Volume of KIO used/ml trial 1=? trial 2=?

A taxi driver in manhattan is sitting in his car : A taxi driver in Manhattan is sitting in his car passing time until someone needs a ride. Unbeknownst to the taxi driver, a man in a nearby alley is robbing two people. After the robber has completed the crime, he runs around the corner and ju..

What is meant by the term path dependency : What is meant by the term, path dependency and discuss how path dependency has effected the development of two major Australian economic institutions.

Are humans plantigrade or digitigrade : What features of rats make them good experimental models to learn about factors that affect humans?

User Account

All Pages