On May 31, a company had a balance in its accounts receivable of $103,200. Prepare journal entries to record the following transactions for June. Assume the company uses a perpetual inventory system. June 2Sold merchandise on account, $12,000. The cost of the merchandise was $7,200.June 8Sold $15,000 worth of accounts receivable to First Bank. First Bank charged a 4% factoring fee.June 20Borrowed $30,000 cash from Second National Bank, pledging $31,500 worth of accounts receivable as collateral for the loan.
What will be an ideal response?
| June 2 | Accounts Receivable | 12,000 | ? |
| ? | Sales | ? | 12,000 |
| ? | Cost of Goods Sold | 7,200 | ? |
| ? | Merchandise Inventory | ? | 7,200 |
| ? | ? | ? | ? |
| June 8 | Cash | 14,400 | ? |
| ? | Factoring Fee Expense ($15,000 * .04) ? | 600 | ? |
| ? | Accounts Receivable | ? | 15,000 |
| ? | ? | ? | ? |
June 20 | Cash | 30,000 | ? |
| ? | Notes Payable | ? | 30,000 |
| ? | (A note would disclose the collateral agreement.) | ? | ? |
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