Prepare the journal entries that would be made by X company

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Question - The following information is related to X Company during 2019:

a) Costumer accounts in the amount of $340000 are specifically assigned to Reasonable finance company as security for a loan of $260000 that is made. The finance charge assessed by Reasonable is 5% of the amount borrowed.

b) X company collected $110000 on assigned accounts.

c) X company forwarded the amount collected plus a $2000 check for interest on the loan.

Required - Prepare the journal entries that would be made by X company to reflect the above reflection. Assume that above transactions reflect all activity relating to the assigned receivables and all amounts are material. What supplementary information would be disclosed in X companies footnotes as of the end of the 2019.

Reference no: EM132535534

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