User Account

All Pages

Prepare the journal entry required on denniss books

Assignment Help Accounting Basics
Reference no: EM132549893

Question - On May 1, Dennis, Inc. factored €800,000 of accounts receivable with Quick Finance on a without recourse basis. Under the arrangement, Dexter was to handle disputes concerning service, and Quick Finance was to make the collections, handle the sales discounts, and absorb the credit losses. Quick Finance assessed a finance charge of 6% of the total accounts receivable factored and retained an amount equal to 2% of the total receivables to cover sales discounts.

Instructions -

(a) Prepare the journal entry required on Dennis's books on May 1.

(b) Prepare the journal entry required on Quick Finance's books on May 1.

(c) Assume Dennis factors the €800,000 of accounts receivable with Quick Finance on a with recourse basis instead. Prepare the journal entry required on Dennis's books on May 1.

(d) How does assigning accounts receivable help companies improve their cash flow situation?

Reference no: EM132549893

Questions Cloud

Create the journal entries to account for the events : Create the journal entries to account for the events and transactions in relation to the machine between 1 July 2017 and 31 December 2020.
What source of power is most aligned with empathy : What Source of Power is most aligned with empathy? Why?
Enhance security and restrict access : When a business/firm grows and has their data in different places and on different documents/spreadsheets, why is integrating
Prepare the bank reconciliation statement as at june : Prepare the bank reconciliation statement as at 30 June 2019. On 30 June 2019 ABC Pty Ltd had a cash balance as per bank ledger
Prepare the journal entry required on denniss books : Dennis, Inc. factored €800,000 of accounts receivable with Quick Finance on a without recourse basis. Prepare the journal entry required on Denniss books
Determine the amount of lease receivable to be recognised : Determine the amount of the lease receivable to be recognised by Fast Finance Ltd on 1 July 2016. Assume that Fast Finance Ltd can readily
Attention to stakeholders than do for-profit managers : Do you think non-profit managers have to pay more attention to stakeholders than do for-profit managers? Explain.
Calculate the net present value of the new equipment : The new equipment will cost $520,000 to purchase and a further $130,000 to install. Calculate the net present value of the new equipment
How would endeavour ltd account for a revised amount : How would Endeavour Ltd account for a revised amount of $5,000? What if the revised amount was $9,000? Determine the amounts at which Endeavour Ltd would

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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