Martinez Company finances some of its current operations by assigning accounts receivable to a finance company. On July 1, 2017, it assigned, under guarantee, specific accounts amounting to $210,000. The finance company advanced to Martinez?80% of the accounts assigned (20% of the total to be withheld until the finance company has made its full recovery), less a finance charge of?0.50% of the total accounts assigned.
On July 31, Martinez Company received a statement that the finance company had collected $112,000?of these accounts and had made an additional charge of?0.50% of the total accounts outstanding as of July 31. This charge is to be deducted at the time of the first remittance due Martinez Company from the finance company. (Hint:Make entries at this time.) On August 31, 2017, Martinez Company received a second statement from the finance company, together with a check for the amount due. The statement indicated that the finance company had collected an additional $70,000?and had made a further charge of?0.50% of the balance outstanding as of August 31.
Make all entries on the books of Martinez Company that are involved in the transactions above.
1st Jul Account Receivable Assigned
To Account Receivable Dr. Bank A/c
To Account Receivable Assigned Dr.
Dr. Financing Fee
To Bank A/c Dr. 31st Aug Financing Fee
To Bank A/c Dr. 31st...
This question was answered on: Sep 18, 2020
Buy this answer for only: $15
This attachment is locked
We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free copy from our tutoring website www.aceyourhomework.com (Deadline assured. Flexible pricing. TurnItIn Report provided)
Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
About this QuestionSTATUS
Sep 18, 2020EXPERT
GET INSTANT HELP/h4>
We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.
You can also use these solutions:
- As a reference for in-depth understanding of the subject.
- As a source of ideas / reasoning for your own research (if properly referenced)
- For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
NEW ASSIGNMENT HELP?
Order New Solution. Quick Turnaround
Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.
WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN YOUR SET DEADLINE.