Factoring fee expense

Author: dekh

August undefined, 2024

WebSo, the longer your customer takes to pay, the more you’ll pay in fees. A factoring company may charge 2% for the first 30 days and 0.5% for every 10 days that the invoice remains … WebA 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: A) Debit to Cash of …

Solved Jervis sells $3,100 of its accounts receivable to - Chegg

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 … WebA 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 ... crunchy pizza

Solved A company factored exist30,000 of its accounts

WebThe 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. ... 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 … 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 … maranata confeitaria

What Is the Cost of Factoring? Understanding Freight Factoring

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 … WebA 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. maranata decorWebJournal 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% ... maranata culto

"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 … " - Factoring fee expense

Factoring fee expense

Solved A company factored exist30,000 of its accounts

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 … 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.

Did you know?

WebThe fee on your $100 invoice if it's paid in 60 days would be: First 30 days: $100 *2% = $2.00. Second 30 days: $100 * 1% = $1.00. Total factoring fee = $2+$1 = $3. Here is a simple Factoring Flat Discount Calculator for … WebThe 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 ...

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 … WebJan 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 …

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 ... 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.

WebA 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? ... Debit- Cash 9,800 Debit- Factoring Fee expense 200 Credit- Accounts Receivable 10,000. On October 29 of the current year, a company concluded that a customer's $4,400 account receivable was ... maranata enterprise llcWebExpert 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. maranata eventosWebDebit 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 ... maranata eliana ribeiro