Kendall corporation designs and manufactures sports cars. during the course of its business, kendall generates substantialreceivables from its customers. on july 1, 2017. to improve its cash flow, kendall establishes a securitization entity (se) and(1) transfers without recourse $20.5 million of its receivables to the se and (2) surrenders control over these receivables. the se then sells securities backed by the cash flows associated with kendall’s receivables. because the se is separatefrom kendall. and the receivables are diversified across hundreds of customers, investors are willing to pay $24 million forthe securities. the se then transfers the 524 million to kendall corporation. required: 1. prepare kendall’s entry to record the securitization as a sale.2 show how your answer to requirement 1 would change if control over the receivables is not surrendered at the time ofthe transfer (i. e.. an agreement exists whereby kendall would be forced to absorb significant losses associated with these’s receivables).

Exercise 15-7 crawford corporation incurred the following transactions. 1. purchased raw materials on account $53,000. 2. raw materials of $45,200 were requisitioned to the factory. an analysis of the materials requisition slips indicated that $9,400 was classified as indirect materials. 3. factory labor costs incurred were $65,400, of which $50,200 pertained to factory wages payable and $15,200 pertained to employer payroll taxes payable. 4. time tickets indicated that $55,000 was direct labor and $10,400 was indirect labor. 5. manufacturing overhead costs incurred on account were $81,700. 6. depreciation on the company’s office building was $8,100. 7. manufacturing overhead was applied at the rate of 160% of direct labor cost. 8. goods costing $89,400 were completed and transferred to finished goods. 9. finished goods costing $76,000 to manufacture were sold on account for $105,100. journalize the transactions. (credit account titles are automatically indented when amount is entered. do not indent manually.) no. account titles and explanation debit credit (1) (2) (3) (4) (5) (6) (7) (8) (9) (to record the sale) (to record the cost of the sale) click if you would like to show work for this question: open show work