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On June 30, Petrov Co. has $ 128,700 of accounts receivable. Prepare journal entries to record the following selected July transactions. Also prepare any footnotes to the July 31 financial statements that result from these transactions. (The company uses the perpetual inventory system.)
July 4 Sold $ 7,245 of merchandise ( that had cost $ 5,000) to customers on credit.
9 Sold $ 20,000 of accounts receivable to Main Bank. Main charges a 4% factoring fee.
17 Received $ 5,859 cash from customers in payment on their accounts.
27 Borrowed $ 10,000 cash from Main Bank, pledging $ 12,500 of accounts receivable as security for the loan.
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