User Account

All Pages

Journal entry to record the transactions in the books

Assignment Help Accounting Basics
Reference no: EM132912226

Question - Garliet Company has entered into a long-term assignment agreement with CDE Bank. Under the terms of the financing agreement, Garliet Company received 80% of the value of all accounts assigned and is charged a 2% service charge, which is based upon the amount of cash received. In addition, the CDE Bank charges Garliet 10% interest on the outstanding loan. Garliet Company will continue to collect the assigned receivables. The following are the transactions related to the assignment:

Jan. 1, 202X - Accounts receivable of P1,000,000 are assigned.

Jan. 15, 202X - Garliet Company approves a sales return of P10,000 on the assigned accounts.

Jan. 31, 202X - Collections are made on P600,000 of assigned accounts. This amount and one month's interest on the outstanding loan nare remitted to the finance company.

Feb. 28, 202X - P300,000 of assigned accounts are collected, and the remaining loan is repaid.

Requirements -

a. Journal entry on Garliet Company's book to record the transactions.

b. Assuming that the assignment agreement is on a notification basis, journal entry to record the transactions in the books of Garliet Company.

Reference no: EM132912226

Questions Cloud

Significant paradigms shifts in information technology : According to your readings, cloud computing represents one of the most significant paradigms shifts in information technology (IT) history,
How much federal and state tax you need to pay : Write a Java application to calculate how much federal and state tax you need to pay.
Find the recurrence relation an satisfies : Find the recurrence relation an satisfies and What is the radius of convergence for that series
What is the necessary journal entry to record transactions : Assuming that the March 1 transaction did not happen, what is the necessary journal entry to record the above transactions
Journal entry to record the transactions in the books : Assuming that the assignment agreement is on a notification basis, journal entry to record the transactions in the books of Garliet Company
Pseudocode is very important for programmers : Pseudocode is very important for programmers. It helps to sort out your thoughts before coding and is for humans (programmers), not machines
Find the interest rates earned on each : Find the interest rates earned on each of the following - You borrow $10,000 and promise to make payments of $2,504.60 at the end of each year for 5 years
What is the carrying value of the building on December : WITCH Inc. acquired a machinery with a cost of P600,000 and residual value of P100,000. What is the carrying value of the building on December
Data and start exploring potential relationships : You will perform an exploratory analysis that will allow you to get a feel for the data and start exploring potential relationships.

Reviews

Write a Review

Accounting Basics Questions & Answers

  What are the reasons for regulating the functions of banks

What are the reasons for regulating the functions of banks? What key roles does the Federal Reserve System perform in the banking and financial system?

  What was the ROI

YYY, Inc. had residual income of $19,000, a required rate of return of 7 percent, and an investment base of $1,400,000. What was the ROI

  Assume the marina operator is unsophisticated in business

Assume the marina operator is unsophisticated in business. Explain the managerial significance of the above accounting to this person.

  What is the accrued interest as of December

The effective interest rate of similar bonds without the conversion feature is 5%. What is the accrued interest as of December 31, 2020

  Calculate mt glass tax rate for june

M.T. Glass, Inc. employs a periodic inventory system and sells its inventory to customers for $14.25 per unit. Calculate M.T. Glass' tax rate for June.

  Prepare the income statement for the month ended august

Variable manufacturing costs per watch R550. Prepare the Income Statement for the month ended 31 August 2020 using the absorption costing method

  This year barney and betty sold their home sales price

this year barney and betty sold their home sales price 750000 cost 200000. all closing costs were paid by the buyer.

  Prepare journal entries to record each of these events

Indicate the effect (increase, decrease, or no effect) of each of these transactions on total assets, liabilities, and stockholders’ equity. Prepare journal entries to record each of these events. Prepare a statement of stockholders’ equity, assuming..

  Compute the correct price of the zero-coupon bond

Assuming the risk premium of duration risk is 50 bps each year, and the bond's face value is EUR 1,000, compute the correct price of the zero-coupon bond

  What makes revenue recognition a difficult tasks

What makes revenue recognition one of the more difficult tasks accountants face

  Prepare journal entries to record the transactions

Prepare journal entries to record the transactions, Land and building were acquired by issuing 60,000 shares of P100 par value.

  Allowance for doubtful accounts is estimated as a percentage

The following information is available to you:

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd