Brief Exercise 7-10 Cullum ber Incorporated factored $139,800 of accounts receiv

Question

Brief Exercise 7-10 Cullum ber Incorporated factored $139,800 of accounts receivable with Riverbed Factors Inc. on a without-recourse basis. Riverbed assesses a 3% finance charge of the amount of accounts receivable and retains an amount equal to 6% of accounts receivable for possible adjustments. Prepare the journal entry for Cullumber Incorporated and Riverbed Factors to record the factoring of the accounts receivable to Riverbed. (If no entry is required, select No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit lcer 1. Riverbed 2. Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

No. Account Title and Explaination Debit Credit Cullumber 1 Cash $ 1,27,218 Due from factor $       8,388 Loss on sale of receivable $       4,194 Accounts receivable $   1,39,800 Riverbed 2 Accounts receivable $ 1,39,800 Due to customer $         8,388 Finance Revenue $         4,194 Cash $   1,27,218 Due from factor = $1,39,800 X 6% = $         8,388 Loss on sale of receivable = $1,39,800 X 3% = $         4,194

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.