posted by .

Accounts receivable in the amount of 250,000 were assigned to the fast Finance Company by Nance INC as security for a loan of 200,000. The finance company charged a 4% commision on the face amount of the loan, and the note bears interest at 9% per year. During the first month Nance collected 130,000 on assigned accounts. This amount was remitted to the finance company along with one month's interest on the note.
Make all the entries for Nance Inc associated with the transfer of the accounts receivable, the loan, and the remittance to the finance company.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Mathematics

    Jake's car needs repairs but he is short of cash. A payday loan company charges a fee of 46 for a two week loan of 250. This is equivalent to a discounted loan with proceeds of 250 and a loan amount of 296. What is the per annum interest …
  2. finance

    As of December 31, 2008, Johnstown Company has $50,000 in accounts payable, $100,000 in promissory notes payable in 5 years, $100,000 in cash, $50,000 in accounts receivable and $50,000 in property, plant and equipment. The company‚Äôs …
  3. accounting

    Exercise 9-13: Accounts receivable turnover L.O. A1 The following information is from the annual financial statements of Lucilla Company. 2009 2008 2007 Net Sales $ 262,000 $ 193,000 $ 245,000 Accounts Receivable, net (year-end) 42,700 …
  4. math

    Information related to Hermesch Company for 2011 is summarized below. Total credit sales $2,200,000 Accounts receivable at December 31 825,000 Bad debts written off 33,000 What amount of bad debts expense will Hermesch Company report …
  5. Finance

    calculate the annualized rate of return on a 200 day commercial paper. this loan does not pay periodic interest; it is a discount security. the face value of the paper is 1,000,000 and current market value is 980,000
  6. accounting

    P9-4A (a-d) Wall Inc. uses the allowance method to estimate uncollectible accounts receivable. The company produced the following aging of the accounts receivable at year end. Number of Days Outstanding Total 0-30 31-60 61-90 91-120 …
  7. Financial Accounting

    Use the following information to answer multiple-choice questions 5 and 6. At the end of the year, before any adjustments are made, the accounting records for Sutton Company show a balance of $100,000 in accounts receivable. The allowance …
  8. accounting

    On January 1, 2012, Lexmark Company's Accounts receivable account had a debit balance of $10,000. During January, 2012, the company billed customers for services in the amount of $300,000. Also during January, the company collected …
  9. accounting II

    A company has $314,000 in credit sales. The company uses the allowance method to account for uncollectible accounts. The allowance for doubtful accounts now has a $1,890 debit balance. If the company estimates that $8,160 of accounts …
  10. Finance

    Sheet Metals has an outstanding loan that calls for equal annual payments of $12,600.47 over the life of the loan. The original loan amount was $72,000 at an APR of 8.15 percent. How much of the third loan payment is interest?

More Similar Questions