Business, 06.03.2021 01:00 fluffyanimal456

Mountain High Ice Cream Company transferred $80,000 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 $7,000). Mountain High anticipates a $5,000 recourse obligation. The bank charges a 2% fee (2% of $80,000), and requires that amount to be paid at the start of the factoring arrangement. Required:
Prepare the journal entry to record the transfer on the books of Mountain High assuming that the sale criteria are met.

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 07:10

mark, a civil engineer, entered into a contract with david. as per the contract, mark agreed to design and build a house for david for a specified fee. mark provided david with an estimation of the total cost and the contract was mutually agreed upon. however, during construction, when mark increased the price due to a miscalculation on his part, david refused to pay the amount. this scenario is an example of a mistake.

Answers: 1

Answer

Business, 22.06.2019 10:50

Bill dukes has $100,000 invested in a 2-stock portfolio. $62,500 is invested in stock x and the remainder is invested in stock y. x's beta is 1.50 and y's beta is 0.70. what is the portfolio's beta? do not round your intermediate calculations. round the final answer to 2 decimal places.

Answers: 2

Answer

Business, 22.06.2019 20:00

Afirm is producing at minimum average total cost with its current plant. draw the firm's long-run average cost curve. label it. draw a point on the lrac curve at which the firm cannot lower its average total cost. draw the firm's short-run average total cost curve that is consistent with the point you have drawn. label it.g

Answers: 2

Answer

Business, 22.06.2019 22:50

Amonopolist’s inverse demand function is p = 150 – 3q. the company produces output at two facilities; the marginal cost of producing at facility 1 is mc1(q1) = 6q1, and the marginal cost of producing at facility 2 is mc2(q2) = 2q2.a. provide the equation for the monopolist’s marginal revenue function. (hint: recall that q1 + q2 = q.)mr(q) = 150 - 6 q1 - 3 q2b. determine the profit-maximizing level of output for each facility.output for facility 1: output for facility 2: c. determine the profit-maximizing price.$

Answers: 3

Answer

You know the right answer?

Mountain High Ice Cream Company transferred $80,000 of accounts receivable to the Prudential Bank. T...

Questions