Halen Company factored $50,000 of its accounts receivable with recourse. The factor retained 8% for sales adjustments and charged $3,000 as a financing fee. For simplicity, assume the estimated and actual amounts of the following items are equal: Sales adjustments $2,500 Uncollectible accounts 500 Assume the transfer is recorded as a sale by Halen Company. What is the loss or financing expense to
be recognized on the transfer?
a. $11,000
b. $6,000
c. $3,000
d. $8,000
C
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Kelly's Kitchen, a popular chain of fast food restaurants, offers a kids' meal pack free with every purchase of its luxury meal pack. This is an example of a:
a. trade allowance. b. loyalty marketing program. c. rebate. d. premium.
Developmental purposes for performance appraisal include evaluating goal achievement and validating selection criteria.
Answer the following statement true (T) or false (F)
If assumption of the risk is established, it means the defendant usually must pay for damages
Indicate whether the statement is true or false
Which of the following is a reason why the specific identification method may be considered ideal for assigning costs to inventory and cost of goods sold?
a. The potential for manipulation of net income is reduced. b. There is no arbitrary allocation of costs. c. The cost flow matches the physical flow. d. Able to use on all types of inventory.