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Question: On March 3, Plume Appliances sells $710,000 of its receivables to Western Factors Inc. Western Factors Inc. assesses a service charge of 4% of the amount of receivables sold.
Instructions: Prepare the entry on Plume Appliances' books to record the sale of the receivables.
Identify each of the adjustments Laser Recording Systems is discussing as one of the four types of possible adjustments discussed in the chapter.
When the modified accrual basis of accounting is used, can be accrued before cash is received, and explain why the accrual can be made.
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Compute the following for each of the two most recent years: Profit Margin, Return on Shareholders' Equity and Current Ratio
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