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July 23, 2014

Homework Help: accounting

Posted by Leidy on Saturday, November 12, 2011 at 2:55am.

A firm has a balance in its account receivable account and decides to sell the receivables to a factos without recourse. the factor imposes a 10% fee and agrees to pay $36,000 for the receivables. In addition, the seller and the factor agree that $3,000 of the sales price will be held back due to posible sales returns and allowances from these accounts.

A) what is the loss recorded by the firm that sells the receivables?

B) what is hte journal entry to record the sale of the receivables?

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