Valix Finacc vol 1 Problem 6-14

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 1 Problem 6-14

July  26  Cash                                                                                       750,000

              Commission (5% x 1,000,000)                                                   50,000

               Receivable from factor (20% x 1,000,000)                             200,000

                       Accounts receivable                                                                         1,000,000

July  28   Sales return and allowances                                                 50,000

                       Receivable from factor                                                                                      50,000

Aug. 31  Cash                                                                                      150,000

                       Receivable from factor                                                                                    150,000