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  • Salva - Problem 8-10

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    Gilbert Morales
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    Commonplace Company made a sale on account on June 1st for $500,000 and recorded a receivable. On June 3rd, they received a cash payment of $340,000 from the factoring company, which included deducting the sales discount of $10,000 and commission of $25,000 owed to the factoring company, leaving a receivable from the factoring company of $125,000. On June 9th, they factored another $50,000 of receivables, deducting a $1,000 discount, leaving a $49,000 receivable from the factoring company. On June 15th, they received a cash payment of $76,000 from the factoring company

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    Salva_Problem 8-10

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    Commonplace Company made a sale on account on June 1st for $500,000 and recorded a receivable. On June 3rd, they received a cash payment of $340,000 from the factoring company, which included deducting the sales discount of $10,000 and commission of $25,000 owed to the factoring company, leaving a receivable from the factoring company of $125,000. On June 9th, they factored another $50,000 of receivables, deducting a $1,000 discount, leaving a $49,000 receivable from the factoring company. On June 15th, they received a cash payment of $76,000 from the factoring company

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    © All Rights Reserved
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    3 views2 pages

    Salva - Problem 8-10

    Uploaded by

    Gilbert Morales
    Commonplace Company made a sale on account on June 1st for $500,000 and recorded a receivable. On June 3rd, they received a cash payment of $340,000 from the factoring company, which included deducting the sales discount of $10,000 and commission of $25,000 owed to the factoring company, leaving a receivable from the factoring company of $125,000. On June 9th, they factored another $50,000 of receivables, deducting a $1,000 discount, leaving a $49,000 receivable from the factoring company. On June 15th, they received a cash payment of $76,000 from the factoring company

    Copyright:

    © All Rights Reserved
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    Flag for inappropriate content
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    Problem 8-10: Commonplace Company

    #MayGabayNiLucaPacioli
    Requirements:
    Prepare journal entries to record the transactions.
    JUNE June 3:
    1 A/R 500,000 Gross Amount
    Sales 500,000 Less: Sales Discount
    # Commission
    3 Cash 340,000 Receivable from Factor
    Sales Discount 10,000 Cash Received from Factoring
    Commission 25,000
    Receiveble from Factor 125,000
    A/R 500,000
    #
    9 SRA 50,000
    Sales Discount 1,000
    Receivable from Factor 49,000
    #
    11 No Entry

    15 Cash (125000-49000) 76,000


    Receivable from Factor 76,000
    #
    MayGabayNiLucaPacioli

    500,000
    (2%*500,000) 10,000
    (5%*500,000) 25,000
    (25%*500,000) 125,000 160,000
    m Factoring 340,000

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