Samson wholesale beverage company regularly factors its

Assignment Help Accounting Basics
Reference no: EM13483365

Samson Wholesale Beverage Company regularly factors its accounts receivable with the Milpitas Finance Company. On April 30, 2013, the company transferred $800,000 of accounts receivable to Milpitas. The transfer was made without recourse. Milpitas remits 90% of the factored amount and retains 10%. When Milpitas collects the receivables, it remits to Samson the retained amount less a 4% fee (4% of the total factored amount). Samson estimates the fair value of the last 10% of its receivables to be $60,000.
Required:

Prepare journal entries for Samson Wholesale Beverage for the transfer of accounts receivable on April 30 assuming the sale criteria are met.

Reference no: EM13483365

Questions Cloud

Assuming that zylex is in a 35 percent corporate tax : bond interest payments before and after taxes. zylex corp has issued 2500 bonds with a total principal value of
Hancock corporation is in the process of preparing its : hancock corporation is in the process of preparing its financial statements for 2013. assume no entries for
In all respects company a and company b are identical : in all respects company a and company b are identical except that company as costs are mostly variable whereas company
The companys variable costs per unit and total fixed costs : nesman company which has only one product has provided the following data concerning its most recent month of
Samson wholesale beverage company regularly factors its : samson wholesale beverage company regularly factors its accounts receivable with the milpitas finance company. on april
During march 200000 units were started work in process at : orioles co. began march with no work in process in its first department. during march the following production costs
What is the balance of the stock investments account on : rosen company purchased 35000 shares of common stock of corporation as a long-term investment for 800000. during the
The most appropriate discount rate to use when applying a : 1. the most appropriate discount rate to use when applying a fcfe valuation model is the .required rate of return on
The research department has developed a new product c as a : roland company operates a small factory in which it manufactures two products a and b. production and sales result for

Reviews

Write a Review

Accounting Basics Questions & Answers

  Primary goals of internal control

An introduction to internal controls, explaining in your own words the two primary goals of internal control.

  Write down a 350- to 500-word paper in which you

write a 350- to 500-word paper in which you differentiate between valuation depreciation amortization and depletion. is

  Write a short memo to ralph sampson describing the analysis

west field corporation makes two different boat anchors-a traditional fishing anchor and a high-end yacht anchor-using

  Authorized stock of a corporation

The authorized stock of a corporation: a. only reflects the initial capital needs of the company. b. is indicated in its by-laws. c. must be recorded in a formal accounting entry. d. is indicated in its charter.

  Amortization for the current year

If no net gain (loss) was carried in accumulated OCI at the beginning of the year, the amount of net gain (loss) subject to required amortization for the current year is:

  Net income

Chen, Inc. purchases 1,000 shares of its own previously issued $5 per common stock for $12,000. Assuming the shares are held in the treasury, what effect does this transaction have on (a) net income, (b) total assets, (c) total paid-in capital,..

  New machine net present value

What are the annual net cash inflows that will be provided by the new dipping machine? Compute the new machine's net present value. Use the incremental cost approach.

  Discuss the inherent audit risk

Discuss the inherent audit risk with the use of account receivable confirmation letters and how this risk can be minimized by the auditing firm.

  What tax issues should regina consider

Regina accepted a new job in Dallas in April 2008. Unable to rent her home, she rented it in November 2008, at which its fair market value was $240,000. In June 2010, she sold the home for $230,000. What tax issues should Regina consider?

  Problem on cost flow assumption

Nichols Company had 500 units of "Dink" in its inventory at a cost of $5 each. It purchased, for $2,400, 300 more units of "Dink". Nichols then sold 600 units at a selling price of $10 each, resulting in a gross profit of $2,100. The cost flow ass..

  Problem related to full refund credit

Thomas Book Sales, Inc., supplies textbooks to college and university bookstores. The books are shipped with a proviso that they must be paid for within 30 days but can be returned for a full refund credit within 90 days.

  Prepare a pro forma operating statement

Management Control is the process by which managers influence other members of the organization to implement the organization's strategies and strategy Formulation is the process of deciding on the goals of the organization and the strategies for a..

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