User Account

All Pages

What amount of loss on factoring should candy company

Assignment Help Accounting Basics
Reference no: EM132756763

Freddy Factors provides financing to other companies by purchasing their accounts receivable on a non-recourse basis. Freddy charges a commission to its clients of 15% of all receivables factored. In addition, Freddy withholds 10% of receivables factored as protection against sales returns or other adjustments. Freddy credits the 10% withheld to Client Retainer and makes payment to clients at the end of each month so that the balance in the retainer is equal to 10% of unpaid receivables as revenue at the time the receivables are factored. Also, experience had led Freddy to establish an Allowance for Bad Debts of 4% of all receivables purchased.

  • On January 2, 2019, Freddy purchased receivables from Candy Company totaling P1,600,000. Candy had previously established an Allowance for Bad Debts for these receivables of P50,000.

Problem 1: By January 31, Freddy had collected P1,400,000 on these receivables. What amount of loss on factoring should Candy Company recognize on sale of its receivable?

 

Reference no: EM132756763

Questions Cloud

Create at least five security-related rules : Create at least five security-related rules for staff members who are adding web pages being added to your site. Include a justification and explanation.
What is the carrying amount of the loan receivable : A bank granted a 10-year loan to a borrower in the amount of P1,500,000.What is the carrying amount of the loan receivable to be reported initially by the bank?
What industry standard methods : What industry standard methods would you recommend your organization implement to most efficiently operate its warehouse?
What was the market risk premium : The average annual T-bill yield during the same period was 5.6 percent. What was the market risk premium during these 10 years
What amount of loss on factoring should candy company : Freddy had collected P1,400,000 on these receivables. What amount of loss on factoring should Candy Company recognize on sale of its receivable?
Global industry competitiveness : Describe the Tata Group's major subsidiaries and their relative global industry competitiveness. How has Tata combined product and geographic diversification?
Describe any feedback loops present in the system : For this assignment, complete the following: Choose a system in your own life. In one paragraph, describe the purpose of this system.
How much should be presented as trade and other receivables : On December 31, 2019, the "Receivable" account, How much should be presented as "trade and other receivables" under current assets?
Communicating policy even when you do not agree : How will you accommodate multiple cultures when communicating these issues to employees?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How the u.s. can manufacture direct materials

Evaluate and analyze how the U.S. can manufacture direct materials for technology products in the global marketplace at competitive costs.

  Calculate the sales revenue and cost of goods sold

Collections on account were P794,000 in 2018. Manufacturing overhead was 300% of direct labor cost. Calculate the Sales revenue and Cost of goods sold

  The potential for improved control over the availability of

sycamore company uses a certain part in its manufacturing process that it buys from an outside supplier for 37 per part

  What is need to be done to resolve the system implementation

How you can help Mr. Simpson to guide him through the acquisition process for the new AIS? What's need to be done to resolve the system implementation process.

  What will appear on the fund financial statements

What will appear on the government-wide financial statements for this landfill for the year ended December 31, 2015?

  Examine the budget process

Examine the Budget Process. Evaluating the budget process must begin with an organizational assessment. Develop a paper that provides basic background portfolio

  Prepare a departmental expense allocation spreadsheet

Over road Cycle Shop has two service departments (advertising and administration) and two operating departments (cycles and clothing).

  What is justin firm required to do to protect client

Justin, a member, has been in public practice. What is Justin's firm required to do to protect its client's confidential information in this type of situation?

  Preferred stock was purchased at its par value of 24000 the

linda clark received 182000 from her mothers estate. she placed the funds into the hands of a broker who purchased the

  How much should be paid in dividends

Glendas management believes that a debt-equity ratio of 40 percent is best for the firm. How much should be paid in dividends

  Distribution of income of families

The distribution of income of families in the US in 1979 (in actual dollars uncorrected for in?ation) is shown in the table below (Prob 4.28):

  What is the balance in the common stock account

What is the balance in the common stock account?The following amounts are reported in the ledger of Mariah Company:Assets$81,000

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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