Factoring fee expense

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August undefined, 2024

WebA company factored $39,000 of its accounts receivable and was charged a 2% factoring fee. The journal entry to record this transaction would include a: Multiple Choice Debit to Cash of $39,780 and a credit to Accounts Receivable of $39.780 Debt to Cash of $39,000 and a credit to Notes Payable of 539.000, Debit to Cash of $39,000 and a credit to ... WebUnder the allowance method of accounting for uncollectible accounts receivable, no estimate is made to predict bad debts expense. F A company received a $1,000, 90-day, 10% note receivable.

Solved A company factored exist30,000 of its accounts

WebTo be able to charge more due to fees and interest. Mullis Company sold merchandise on account to a customer for $885, terms n/30. The journal entry to record this sale transaction would be: ... Bad debts expense 2,000 (credit) Cash 2,000 (debit) Accounts Receivable—A. Hopkins 2,000 (credit) WebThe journal entry to record the adjustment to the allowance account includes a debit to Bad Debts Expense for: $3,740. At the end of the current year, using the aging of receivable method, management estimated that $32,750 of the accounts receivable balance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful ... can we overload the main me

Solved Jervis sells $4,400 of its accounts receivable to Chegg.com

WebDebit Cash $2,592; debit Factoring Fee Expense $108; credit Accounts Receivable $2,700. Debit Cash $2,700; credit Factoring Fee Expense $108; credit Accounts Receivable $2,700. Expert Answer. Who are the experts? Experts are tested by Chegg as specialists in their subject area. We reviewed their content and use your feedback to keep the quality ... http://www.factoring-company.us/factoring-fees.html WebIndicate where on the tax return the expenses from the factoring arrangements are deducted. Identify if the factoring fees are netted against other items such as sales. … bridgewater townhouses st augustine fl

A/R Factoring - Definition, Why Factor, Types of Factoring

WebDebit Cash $3,400; credit Factoring Fee Expense $68; credit Accounts Receivable $3,400. Debit Accounts Receivable $3,400; credit Factoring Fee Expense $68; credit Cash $3,332. Expert Answer. Who are the experts? Experts are tested by Chegg as specialists in their subject area. We reviewed their content and use your feedback to keep the quality ... WebThe Factoring Fee on the date on which a Purchased Account is Closed. From the fee deposit, Client agrees to pay to Riviera a Factoring Fee equal to the sum of (1) Two and … can we override constructors in javaWebQuestion: A Company sold $10,000 of its accounts receivable and was charged a 2% factoring fee. How should the company record this transaction in the journal? A. Debit Credit Cash 9,800 Factoring Fee Expense 200 Accounts Receivable 10,000 B. Cash 10,000 Accounts Receivable 10,000 C. Cash 10,000 C. Cash 10,000 Factoring Fee … bridgewater township kia dealership

"WebThe journal entry to record this transaction would include a debit to Cash of $30,000, a debit to Factoring Fee Expense of $600, and credit to Accounts Receivable of $30,600. [ Select ] ["True", "False"] 3. A high accounts receivable turnover in comparison with competitors suggests that the firm should tighten its credit policy. ... " - Factoring fee expense

Factoring fee expense

Factoring Fees - The Simple Equation for Accounts Receivable …

WebExpert Answer. 1. Answer : True Explanation; A promissory note is a written promise to pay a specified amount of money either on demand or at a stated future date. 2. Answer : Option A , Debit Ca …. 36 A promissory note is a written promise to pay a specified amount of money either on demand or at a stated future date. WebA company factored $41,000 of its accounts receivable and was charged a 1% factoring fee. The journal entry to record this transaction would include a: Multiple Choice Debit to Cash of $41000 and a credit to Accounts Receivable of $41000 Debit to Cash of $41,000 and a credit to Notes Payable of $41,000.

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WebJournal Entries Date General Journal Debit Credit XXXX Cash ($3100*2%) $ 3,038.00 Factoring fee expense $ 62.00 Accounts Receivable $ 3,100.00 To record the sal …. View the full answer. Transcribed image text: Jervis sells $3,100 of its accounts receivable to Northern Bank in order to obtain necessary cash. Northern Bank charges a 2% ... WebA company sold $10,000 of its accounts receivable and was charged a 2% factoring fee. How should the company record this transaction in the journal? ... Debit- Cash 9,800 Debit- Factoring Fee expense 200 Credit- Accounts Receivable 10,000. On October 29 of the current year, a company concluded that a customer's $4,400 account receivable was ...

WebMar 15, 2024 · Factoring expenses, such as set-up fees and commissions are tax deductible. However, the way you report them is different. based on whether you retain … WebJul 23, 2014 · Fees= $1000; Factoring Transactions Bookkeeping Step One. In first step Your Business will receive $77,000 in cash from the Factoring Company and record a “Loss on the Sale” of the receivables …

WebA company factored exist30,000 of its accounts receivable and was charged a 2% factoring fee. The journal entry to record-this would include a debit to Cash of exist30,000, a debit to Factoring Fee Expense of exist600, and … WebSo, the longer your customer takes to pay, the more you’ll pay in fees. A factoring company may charge 2% for the first 30 days and 0.5% for every 10 days that the invoice remains …

WebNorthern Bank charges a 3% factoring fee. What entry should Jervis make to record the transaction? Multiple Choice O Debit Cash $2,522; debit Factoring Fee Expense $78; credit Accounts Receivable $2,600 O Debit Accounts Receivable $2,522; debit Factoring Fee Expense $78, credit Cash $2,600.

WebTypically, the higher the annual sales volume, the lower the factoring fees will be. If you choose a non-recourse factoring program, expect slightly higher fees, since the … bridgewater township mnWebJan 13, 2024 · The $20K fee will be recorded as a “Fee Expense” and is generally deductible as an ordinary and necessary business expense. Note with Liquid Ally there are no application or add-on fees. Business … can we override overloaded methodWebDebit Cash $3,360; debit Factoring Fee Expense $140; credit Accounts Receivable $3,500. Credit Cash $3,360; credit Factoring Fee Expense $140; debit Accounts Receivable $3,500. Expert Answer. Who are the experts? Experts are tested by Chegg as specialists in their subject area. We reviewed their content and use your feedback to keep the quality ... can we override private virtual method in c#WebDebit Cash $71,250; debit Factoring Fee Expense $3,750; credit Accounts Receivable $75,000 Debit Accounts Receivable $71,250; debit Factoring Fee. Jervis sells $75,000 … can we override private methodWebAccounting questions and answers. A company factored dollar 55,000 of its accounts receivable and was charged a 2% factoring fee. The journal entry to record this transaction would Include a: Debit to Cash of dollar 53, 900, a debit to Factoring Fee Expense of dollar 1, 100, and a credit to Accounts Receivable of dollar 55,000. bridgewater township michigan taxesWebA company factored $45,000 of its accounts receivable and was charged a 4% factoring fee. The journal entry to record this transaction would include a: Debit to Cash of $43,200, a debit to Factoring Fee Expense of $1,800, and a credit to Accounts Receivable of $45,000. Explanation. $45,000 × 0.04 = $1,800; $45,000 − $1,800 = $43,200. can we override finalize method in javaWebYou can expect typical factoring fees for a funding company to be somewhere along the lines of 2%–4.5% for the first month and then … can we override final method