12:09 AM a edugen.wileyplus.com Kieso, Intermediate Accounting, 16e INTERMEDIATE

Question

12:09 AM a edugen.wileyplus.com Kieso, Intermediate Accounting, 16e INTERMEDIATE ACCOUNTING 1/II/III (ACC 201 tudy & Practice Assignment Gradebook ORION Downloadable eTextbook en Assignment CALCULATOR MESSAGE MY INSTRUCTOR FULL SCREEN PRINTER VERSIONBACK OURCES part 1 53 Exercise 161 Accounts receivable in the amount of $730,000 were assigned to the Fast Finance Company by Marsh, Inc., as se a loan of $310,000. The finance company assessed a 6% finance charge on the face amount of the loan, and the bears interest at 12% per year. During the first month, Marsh collected $250,000 on assigned accounts. This amount was remitted to the finance along with one month's interest on the note. y Study Make all the entries for Marsh Inc. associated with the transfer of the accounts receivable, the loan, and the remit the finance company. (Credit account titles are automatically indented when the amount is entered. Do indent manually. Round answers to O decimal places, e.g. 5,275.) Account Titles and Explanation Debit Credit

Explanation / Answer

1. To record the borrowing Account Title Debit Credit Cash 291400 Finance Charge 18600 Loan Payable 310000 2. To record assignent of Accounts Receivable Account Title Debit Credit Accounts Receivable - Assigned 730000 Accounts Receivable 730000 3. To record collection against assigned account. Account Title Debit Credit Cash 250000 Accounts Receivable - Assigned 250000 4. To record repayment of loan with interest. Account Title Debit Credit Loan Payable 250000 Interest Expense 2500 Cash 252500

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