Factoring fee expense

Author: sppm

August undefined, 2024

WebJul 23, 2014 · Fees= $1000; Factoring Transactions Bookkeeping Step One. In first step Your Business will receive $77,000 in cash from the Factoring Company and record a “Loss on the Sale” of the receivables … WebExpert Answer. 1. Answer : True Explanation; A promissory note is a written promise to pay a specified amount of money either on demand or at a stated future date. 2. Answer : Option A , Debit Ca …. 36 A promissory note is a written promise to pay a specified amount of money either on demand or at a stated future date.

How to account for a factoring arrangement — …

WebDebit Cash $2,592; debit Factoring Fee Expense $108; credit Accounts Receivable $2,700. Debit Cash $2,700; credit Factoring Fee Expense $108; credit Accounts Receivable $2,700. Expert Answer. Who are the experts? Experts are tested by Chegg as specialists in their subject area. We reviewed their content and use your feedback to keep the quality ... WebAccounting questions and answers. A Company sold $10,000 of its accounts receivable and was charged a 2% factoring fee. How should the company record this transaction in the … bleach memories in the rain online

Solved Jervis sells $75,000 of its accounts receivable to - Chegg

WebQuestion: Jervis sells $3,100 of its accounts receivable to Northern Bank in order to obtain necessary cash, Northern Bank charges a 2% factoring fee. What entry should Jervis make to record the transaction? Multiple Choice Debit Cash $3,038; debit Factoring Fee Expense $62; credit Accounts Receivable $3,100 Debit Accounts Receivable $3,038; debit … WebQuestion: A Company sold $10,000 of its accounts receivable and was charged a 2% factoring fee. How should the company record this transaction in the journal? A. Debit Credit Cash 9,800 Factoring Fee Expense 200 Accounts Receivable 10,000 B. Cash 10,000 Accounts Receivable 10,000 C. Cash 10,000 C. Cash 10,000 Factoring Fee … WebMar 15, 2024 · Factoring expenses, such as set-up fees and commissions are tax deductible. However, the way you report them is different. based on whether you retain … franks the flooring store durham

Solved A Company sold $10,000 of its accounts receivable and

Tax Deductibles and Factoring Fees

WebDebit Cash $3,400; credit Factoring Fee Expense $68; credit Accounts Receivable $3,400. Debit Accounts Receivable $3,400; credit Factoring Fee Expense $68; credit Cash $3,332. Expert Answer. Who are the experts? Experts are tested by Chegg as specialists in their subject area. We reviewed their content and use your feedback to keep the quality ... WebA company factored exist30,000 of its accounts receivable and was charged a 2% factoring fee. The journal entry to record-this would include a debit to Cash of exist30,000, a debit to Factoring Fee Expense of exist600, and … franks the flooring store hartlepoolWebA company factored $39,000 of its accounts receivable and was charged a 2% factoring fee. The journal entry to record this transaction would include a: Multiple Choice Debit to Cash of $39,780 and a credit to Accounts Receivable of $39.780 Debt to Cash of $39,000 and a credit to Notes Payable of 539.000, Debit to Cash of $39,000 and a credit to ... franks theatre delray marketplace movies

"WebThe Factoring Fee on the date on which a Purchased Account is Closed. From the fee deposit, Client agrees to pay to Riviera a Factoring Fee equal to the sum of (1) Two and … " - Factoring fee expense

Factoring fee expense

Solved Jervis sells $2,600 of its accounts receivable to Chegg.com

WebA company factored $38,000 of its accounts receivable and was charged a 1% factoring fee. The journal entry to record this transaction would include a: Debit to Cash of … WebDebit Cash $3,360; debit Factoring Fee Expense $140; credit Accounts Receivable $3,500. Credit Cash $3,360; credit Factoring Fee Expense $140; debit Accounts Receivable $3,500. Expert Answer. Who are the experts? Experts are tested by Chegg as specialists in their subject area. We reviewed their content and use your feedback to keep the quality ...

Did you know?

Web5 rows · Jun 25, 2024 · Essentially, a factoring transaction is recorded as a sale of the receivables, and a gain or loss ...

WebTo be able to charge more due to fees and interest. Mullis Company sold merchandise on account to a customer for $885, terms n/30. The journal entry to record this sale transaction would be: ... Bad debts expense 2,000 (credit) Cash 2,000 (debit) Accounts Receivable—A. Hopkins 2,000 (credit) WebInvoice factoring shields them from the lag time involved in invoicing then waiting to be paid, plus rids businesses of the uncertainty from customers who may pay late. In an ideal world, when businesses send out invoices, they are paid promptly. In the real B2B world, however, customers often require extended payment terms such as 30 – 60 days.

WebNorthern Bank charges a 3% factoring fee. What entry should Jervis make to record the transaction? Multiple Choice O Debit Cash $2,522; debit Factoring Fee Expense $78; credit Accounts Receivable $2,600 O Debit Accounts Receivable $2,522; debit Factoring Fee Expense $78, credit Cash $2,600. WebA company factored $41,000 of its accounts receivable and was charged a 1% factoring fee. The journal entry to record this transaction would include a: Multiple Choice Debit to Cash of $41000 and a credit to Accounts Receivable of $41000 Debit to Cash of $41,000 and a credit to Notes Payable of $41,000.

WebAccounting questions and answers. A company factored dollar 55,000 of its accounts receivable and was charged a 2% factoring fee. The journal entry to record this transaction would Include a: Debit to Cash of dollar 53, 900, a debit to Factoring Fee Expense of dollar 1, 100, and a credit to Accounts Receivable of dollar 55,000.

WebYou can expect typical factoring fees for a funding company to be somewhere along the lines of 2%–4.5% for the first month and then … franks the flooring store darlingtonWebJournal Entries Date General Journal Debit Credit XXXX Cash ($3100*2%) $ 3,038.00 Factoring fee expense $ 62.00 Accounts Receivable $ 3,100.00 To record the sal …. View the full answer. Transcribed image text: Jervis sells $3,100 of its accounts receivable to Northern Bank in order to obtain necessary cash. Northern Bank charges a 2% ... bleach memories in the rain specialWebJan 13, 2024 · The $20K fee will be recorded as a “Fee Expense” and is generally deductible as an ordinary and necessary business expense. Note with Liquid Ally there are no application or add-on fees. Business … franks theatre yorkWebThe journal entry to record the adjustment to the allowance account includes a debit to Bad Debts Expense for: $3,740. At the end of the current year, using the aging of receivable method, management estimated that $32,750 of the accounts receivable balance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful ... franks the flooring store newcastleWebJan 17, 2024 · All factoring companies charge a factoring fee. You may opt for a flat rate. Alternatively, factors will charge a percentage of the amount advanced or of the invoiced … franks the flooring store redcarWebThe journal entry to record this transaction would include a debit to Cash of $30,000, a debit to Factoring Fee Expense of $600, and credit to Accounts Receivable of $30,600. [ Select ] ["True", "False"] 3. A high accounts receivable turnover in comparison with competitors suggests that the firm should tighten its credit policy. ... bleach memories in the rain watchWebA company factored $45,000 of its accounts receivable and was charged a 4% factoring fee. The journal entry to record this transaction would include a: Debit to Cash of $43,200, a debit to Factoring Fee Expense of $1,800, and a credit to Accounts Receivable of $45,000. Explanation. $45,000 × 0.04 = $1,800; $45,000 − $1,800 = $43,200. bleach memories in the rain sub indo