Ask Question
BusinessBusiness
26 July, 13:51

Gipson Furniture factors $700,000 of receivables to Kwik Factors, Inc. Kwik Factors assesses a 3% service charge on the amount of receivables sold. Gipson Furniture factors its receivables regularly with Kwik Factors. What journal entry does Gipson make when factoring these receivables

+3
Answers (1)
  1. 26 July, 17:23
    0
    Dr Cash 679,000

    Dr Service charge expenses 21,000

    Cr Accounts receivable 700,000

    Explanation:

    A factoring business is a company that purchases debt from other companies and then collects them. They generally purchase accounts receivables at a discount from companies that need cash fast.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Gipson Furniture factors $700,000 of receivables to Kwik Factors, Inc. Kwik Factors assesses a 3% service charge on the amount of ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
If investment increases by $10 billion, and the economy's MPC is 0.8, the aggregate demand curve will shift: Group of answer choicesleftward by $50 billion at each price level. rightward by $10 billion at each price level.
Answers (1)
Star co. leases a building for its product showroom. the ten-year nonrenewable lease will expire on december 31, year 10. in january year 5, star redecorated its showroom and made leasehold improvements of $48,000.
Answers (1)
How much spends apple for adds per year global?
Answers (1)
The LIFO conformity rule: Multiple Choice a) Requires that all companies in the same industry use the same accounting methods of inventory valuation. b) Requires when LIFO is used for tax reporting, it is also used for financial reporting.
Answers (1)
If service revenue is $260,000, total expenses are $175,000, additional capital stock issued of $13,000 and dividends declared are $4,000, what is the change in retained earnings as a result of the closing process?
Answers (1)
New Questions in Business
A (n) is the issuer's written promise to pay an amount equaling the par value. The par value is paid at a specified future date. Most often, the issuer is required to make semiannual interest payments.
Answers (1)
The primary goal of the Consumer Financial Protection Bureau is: A To monitor your credit report and ensure your identity and other sensitive data has not been compromised. B To protect against abusive or deceptive debt collection purposes.
Answers (1)
Jake Skinner purchases a big screen TV on credit and will repay the loan with one payment at the end of 90 days. What type of credit did Jake use?
Answers (1)
Which most likely results from producers engaging in specialization? Producers reduce their costs. Producers increase their market share. Producers decrease the materials needed for production. Producers always offer more competitive pricing.
Answers (1)
The workers at State Hospital, a public sector employer, and Acme Inc, a private employer, are subject to speech censorship and arbitrary job termination. Constitutional issues are present only for the State Hospital workers. TrueFalse
Answers (1)
Home » Business » Gipson Furniture factors $700,000 of receivables to Kwik Factors, Inc. Kwik Factors assesses a 3% service charge on the amount of receivables sold. Gipson Furniture factors its receivables regularly with Kwik Factors.
Sign Up Forgot Password?