User Account

All Pages

Prepare the journal entry to record the transfer

Assignment Help Accounting Basics
Reference no: EM13994130

1. Mountain High Ice Cream Company reports under IFRS. Mountain High transferred $60,000 of accounts receivable to the Prudential Bank. The transfer was made with recourse. Prudential remits 90% of the factored amount to Mountain High and retains 10% to cover sales returns and allowances. When the bank collects the receivables, it will remit to Mountain High the retained amount (which Mountain estimates has a fair value of $5,000). Mountain High anticipates a $3,000 recourse obligation. The bank charges a 2% fee (2% of $60,000), and requires that amount to be paid at the start of the factoring arrangement. Mountain High has transferred control over the receivables, but determines that it still retains substantially all risks and rewards associated with them.

Required:

Prepare the journal entry to record the transfer on the books of Mountain High, considering whether the sale criteria under IFRS have been met.

Reference no: EM13994130

Questions Cloud

How should the two groups participate to come to a consensus : Calculate the cost per unit for the Variable costs. Why do you think budget X has high costs and low sales forecasts. Why do you think budget Y has low costs and high sales forecasts? What are the behavioural of this top-down approach. How should the..
What is an example of sustainable consumption : Present generations should continue exploiting natural resources at the cost of problems for future generations.
Describe the eight elements for effective decision making : Your small services company has outgrown the current facility after the first two years of a three-year lease. As the operations manager, you are being held accountable for cancelling orders, and you are beginning to lose market share due to late del..
The neo-neo debate : The Neo-Neo Debate - Mearsheimer, John J. (2007) "Structural Realism, in dunne et. al ch. 42. Waltz, Kenneth. Theory of International Politics (New York McGraw -Hill 1979
Prepare the journal entry to record the transfer : Mountain High Ice Cream Company reports under IFRS. Mountain High transferred $60,000 of accounts receivable to the Prudential Bank.
Understanding fundamental and means objectives : Understanding fundamental and means objectives are important to decision analysis and decision making. As your business has grown, you are evaluating moving your company to a larger office closer to several of your key customers and are looking at se..
Expected to utilize intuitive and critical thinking skills : In today's business environment, managers are expected to utilize intuitive and critical thinking skills on a daily basis in decision making. Why is past experience so important to managers today, and how applicable is it in decision making?
Attract more visitors outside of prime seasons : Why are tourist destinations attempting to attract more visitors outside of prime seasons?
What is the bottleneck time of the system : The three-station work cell illustrated in Figure S7.7, has a product that must go through one of the two machines at station 1 (they are parallel) before proceeding to station 2. what is the bottleneck time of the system? what is the bottleneck stat..

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