Best writers. Best papers. Let professionals take care of your academic papers

Order a similar paper and get 15% discount on your first order with us
Use the following coupon "FIRST15"
ORDER NOW

On November 1, ABC factors $300,000 of accounts receivable with D Corporation without recourse. D will collect the receivables on a notification basis. D advances 90% of the Accounts factored to ABC initially, and assesses a finance charge of 4% of the accounts factored which will be remitted at the end of the agreement. D reserves the balance of accounts receivables factored to cover probable adjustments for sales returns and allowances. ABC does not offer any sales discounts. On November 1, after the factoring transaction has been recorded, determine the effect on ABC's assets: Assets increased by $270,000 Assets decreased by $12,000 Assets decreased by $30,000 Assets decreased by $300,000

On November 1, ABC factors $300,000 of accounts receivable with D Corporation without recourse. D will collect

the receivables on a notification basis. D advances 90% of the Accounts factored to ABC initially, and assesses a finance charge of 4% of the accounts factored which will be remitted at the end of the agreement. D reserves the balance of accounts receivables factored to cover probable adjustments for sales returns and allowances. ABC does not offer any sales discounts. On November 1, after the factoring transaction has been recorded, determine the effect on ABC’s assets:

Assets increased by $270,000

Assets decreased by $12,000

Need assignment help for this question?

If you need assistance with writing your essay, we are ready to help you!

OUR PROCESS

Order

Payment

Writing

Delivery

Why Choose Us: Cost-efficiency, Plagiarism free, Money Back Guarantee, On-time Delivery, Total Сonfidentiality, 24/7 Support, 100% originality

Assets decreased by $30,000

Assets decreased by $300,000

 
"Looking for a Similar Assignment? Order now and Get 10% Discount! Use Code "Newclient"