Exercise 7-16 Accounts Payable Accounts Receivable Advertising Expense Allowance

Question

Exercise 7-16 Accounts Payable Accounts Receivable Advertising Expense Allowance for Doubtful Accounts Bad Debt Expense Cash Cash Over and Short Due from Factor Due to Customer Discount on Notes Payable Discount on Notes Receivable Freight-In Freight-Out Gain on Disposal of Land Interest Expense Interest Payable Interest Receivable Interest Revenue Inventory Land Loss on Sale of Receivables Miscellaneous Expenses No Entry Notes Payable Notes Receivable Office Expense Owner's Drawings Petty Caslh Postage Expense Purchase Discounts Recourse Liability Sales Discounts Sales Discounts Forfeited Sales Revenue Service Revenue Supplies Supplies Expenses Unearned Sales Revenue

Explanation / Answer

Answer:

August 15, 2014 Cash Dr. 247,502

Due from factor Dr. 10,532

Loss on sale of receivable Dr. 9,166

Accounts receivable Cr. 263,300   

Recourse liabilty Cr. 3,900

Calculations for loss on sale of receivables:

= ( 263,300 * 2% ) + 3,900 = $9,166

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

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