Accounts receivable to cover probable adjustments

Assignment Help Accounting Basics
Reference no: EM13149278

Gringo Corporation factors $250,000 of accounts receivable with Winkler Financing, Inc. on a with recourse basis. Winkler Financing will collect the receivables. The receivables records are transferred to Winkler Financing on August 15, 2010. Winkler Financing assesses a finance charge of 2% of the amount of accounts receivable and also reserves an amount equal to 4% of accounts receivable to cover probable adjustments.

Prepare the journal entry on August 15, 2010, for Gringo to record the sale of receivables, assuming the recourse obligation has a fair value of $3,000. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.)

Reference no: EM13149278

Questions Cloud

Likelihood that eight installations took more than minutes : How many of the installations at the Maumee branch would you expect to take more than 30 minutes? What is the likelihood that fewer than eight installations took more than minutes?
How many grams of hydrogen would have to react : How many grams of hydrogen would have to react to produce 71.9 kJ of energy from the reaction 2H2 + O2 --------> 2H2O + 484kJ?
Effect of the application of overhead : Harmon Production Company applies overhead to jobs. Which of the following is one effect of the application of overhead?
Suppose that you have : Suppose that you have two people in an economy, Ms. Hundley and Mr. McKenna, who want to produce a public good S. Suppose we calculate the Lindahl equilibrium using the method in your textbook
Accounts receivable to cover probable adjustments : Winkler Financing assesses a finance charge of 2% of the amount of accounts receivable and also reserves an amount equal to 4% of accounts receivable to cover probable adjustments.
Find the sample size suggested by statement of voters : More than 5 percentage points in either direction from what would have been obtained by interviewing all voters in the United States. Find the sample size suggested by this statement.
What concentration of ammonia is necessary : Given Ksp {Fe(OH)2}= 1.6x10-14 and Kb(NH3)=1.8X10-5. What concentration of ammonia is necessary to start to precipitate ferrous hydroxide {Fe(OH)2} from a solution of 0.0030M FeCl2
U.s. supreme court ruled : Recently, the U.S. Supreme Court ruled that cities could have voucher programs that give money directly to parents, and the parents can then choose between competing schools: public and private. The idea for promoting such a ruling was to create comp..
Deferred income tax liability in balance sheet : Larsen Corporation reported $100,000 in revenues in its 2010 financial statements, of which $44,000 will not be included in the tax return until 2011. The enacted tax rate is 40% for 2010 and 35% for 2011. What amount should Larsen report for defe..

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Prepare dold''s journal entries for the initial transaction

Prepare Dold's journal entries for the initial transaction, recognition of interest each year, and the collection of $35,843 at maturity. (Round answers to 0 decimal places, e.g. $6,538. Credit account titles are automatically indented when the am..

  Subsequent reissuance of the treasury stock

Assuming that the cost method of accounting for treasury stock transaction is used, what is time effect of the subsequent reissuance of the treasury stock on each of the following?

  Determine the cost of this purchase for the purpose

Assume that a U. S. company makes a purchase from a British company and agrees to pay a price of 2 million pounds. How will the U.S. company determine the cost of this purchase for the purpose of recording it in its accounting records? Briefly exp..

  What is the direct labor cost

In August direct labor was 60% of conversion cost. If the manufacturing overhead for the month was $54,000 and the direct materials cost was $34,000, the direct labor cost was:

  Determining the total cash receipts

The remainder is uncollectible. The following are budgeted sales data: January $60,000-February $70,000-March 50,000-April 30,000 - What would April's total cash receipts be ??

  Determine the missing amounts

Determine the missing amounts associated with each letter and complete the following table. If required, round amounts to the nearest dollar. If an amount is zero, enter in "0".

  Audit failure

The "audit failure" issue is one that we should all be concerned about, but in doing so, we need to separate reality from urban myth while we still have the time (Pat McDonnell)

  What will be the amount charged as an expenditure

A government accounts for a municipal landfill in an enterprise fund. How will it determine how much to charge as an expense (and add to a liability) each year that the landfill is in use? Suppose, instead, that it accounts for the landfill in a g..

  Cash disbursements for materials purchases

Streak Merchandising Company expects to purchase $ 60,000 of materials in July and $70,000 of materials in August. Three-quarters of all purchases are paid for in the month of purchase,

  Variety of action games

Sergo Games produces a variety of action games which sold more than 800,000copies. In 2011, the production plant prepared 3,000,000 CDs and incurred the following cost:

  Basics of bond discount amortization

Construct a bond amortization table for this problem to indicate the amount of interest expense and discount amortization at each May 31. Include only the first four years. Make sure all columns and rows are properly labeled. (Round to the nearest..

  Calculate the initial tax imposed on black pearl

The board of directors of BLACK Pearl, Inc., a private foundation, consists of Alice, Beth, and Carlos. They vote unanimously to provide a $250000 grant to Mark, their business associate.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd