Prepare journal entry to record the factoring

Assignment Help Accounting Basics
Reference no: EM133168207

Question - Zee Company sold accounts receivable without recourse for P5,300,000. The entity received P5,000,000 cash immediately from the factor. The remaining P300,000 will be received once the factor verifies that none of the accounts receivable is in dispute. The accounts receivable had a face amount of P6,000,000. The entity had previously established an allowance for bad debts of P250,000 in connection with these accounts.

Required - Prepare journal entry to record the factoring of accounts receivable.

Reference no: EM133168207

Questions Cloud

How much will wind recognize as estimated liability : The employee claims damages amounting to P800,000, How much will WIND recognize as estimated liability for damages on its December 31, 2022
Which is recorded on august : Caddell Corporation borrows $100,000 from a bank on August 1, Year 1, by signing an 8 percent, Which is recorded on August
Determine the ratio of the two relaxation times : Determine the ratio of the two relaxation times where it becomes difficult to separate the two relaxation processes
Calculate josh taxable income and tax payable : Josh also donated $4,200 to Human Appeal Australia, a registered Not-for-Profit organisation. Calculate Josh taxable income and tax payable
Prepare journal entry to record the factoring : The remaining P300,000 will be received once the factor verifies that none of the accounts receivable is in dispute. Prepare journal entry to record the factori
Determine the exact and ordinary simple interests : Determine the exact and ordinary simple interests on P350,000 for the period from January 16 to November 26, 2022, if rate of interest is 24% simple interest
Show how this contract should appear in income statement : Show how this contract should appear in income statement and the statement of financial position for the year ended 31 Dec 2019 using Output Method
Critical literature review on an international business : Apply research skills to carry out empirical research on an international business subject, including collecting, analysing and interpreting data
What is the breakeven point of the company factory : A new subsidiary in the group has a monthly operating expenses of about $55,000. What is the breakeven point of the company factory

Reviews

Write a Review

Accounting Basics Questions & Answers

  Compute the cost of its ending inventory at december

Assuming that carpenter Inc. uses the conventional retail inventory method, compute the cost of its ending inventory at December 31, 2011

  Find what does net present value mean

What does Net Present Value mean? If the investment to generate the cash flows in question 8 were $2,000, what would the NPV be assuming

  Tytus co entered into the following transactions involving

tytus co. entered into the following transactions involving short-term liabilities in 2010 and 2011. 2010

  A manufacturing company uses a job order cost accounting

a manufacturing company uses a job order cost accounting system. overhead is applied using direct labor hours as an

  How much interest expense results from this note in

keshena co. borrows 195000 cash on december 1 2009 by signing a 120-day 11 note with a face value of 195000.on what

  What amount of accrued vacation is reported

As of December 31, 2015 & 2016, respectively, Venture corp. has accrued vacation on its books of 19,000 and 21,000. What amount of accrued vacation is reported

  Is an employer-provided e-mail system or social media outlet

Discuss work-related matters. Is an employer-provided e-mail system or social media outlet simply a digital water cooler? Why or why not?

  What is the maximum amount finley inc should pay

The applicable daily interest rate is .05%. What is the maximum amount Finley, Inc. should pay to completely eliminate the collection float

  Reginald was the tenant in a rental house the landlord

reginald was the tenant in a rental house. the landlord sold the house and paid reginald 4000 to cancel the lease and

  Prepare a performance report for ranger company

Prepare a performance report for Ranger Company for the year.

  A company is considering the purchase of new equipment for

a company is considering the purchase of new equipment for 45000. the projected after tax net in mod is 3000 after

  What is sylvester amti

Sylvester files as a single taxpayer during 2017 and claims one personal exemption. What is Sylvester's AMTI if he used the home-equity proceeds to purchase car

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!

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