Valix Finacc vol 1 Problem 6-12

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 1 Problem 6-12

Feb.  1  Cash                                                                                       680,000

              Service charge (5% x 800,000)                                                 40,000

              Receivable from factor (10% x 800,000)                                   80,000

                     Accounts receivable                                                                                800,000

       15   Sales return and allowances                                                    20,000

                     Receivable from factor                                                                              20,000

       28   Cash (80,000 – 20,000)                                                              60,000

                     Receivable from factor                                                                              60,000