with Concord Financing Ltd. to sell a large portion of Riverbed’s
past-due accounts receivable.
- The Controller For Riverbed Corporation Has Reached An Agreement With Concord Financing Ltd To Sell A Large Portion Of 1 (98.75 KiB) Viewed 60 times
The controller for Riverbed Corporation has reached an agreement with Concord Financing Ltd. to sell a large portion of
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The controller for Riverbed Corporation has reached an agreement with Concord Financing Ltd. to sell a large portion of
The controller for Riverbed Corporation has reached an agreement
with Concord Financing Ltd. to sell a large portion of Riverbed’s
past-due accounts receivable.
The controller for Riverbed Corporation has reached an agreement with Concord Financing Ltd. to sell a large portion of Riverbed's past-due accounts receivable. Riverbed agrees to sell $1,950,000 of accounts receivable to Concord with recourse. Riverbed's controller estimates that the fair value of Riverbed's liability to pay Concord for uncollectible accounts is $177,000. Concord will charge Riverbed 7% of the total receivables balance as a financing fee, and will withhold an initial amount of 8%. Calculate the net proceeds and the gain or loss on the disposal of receivables to Concord Financing Ltd. Net proceeds $ on disposal of receivables $ Prepare the journal entry on the books of Riverbed Corporation to record the disposal of receivables to Concord Financing Ltd. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit
with Concord Financing Ltd. to sell a large portion of Riverbed’s
past-due accounts receivable.
The controller for Riverbed Corporation has reached an agreement with Concord Financing Ltd. to sell a large portion of Riverbed's past-due accounts receivable. Riverbed agrees to sell $1,950,000 of accounts receivable to Concord with recourse. Riverbed's controller estimates that the fair value of Riverbed's liability to pay Concord for uncollectible accounts is $177,000. Concord will charge Riverbed 7% of the total receivables balance as a financing fee, and will withhold an initial amount of 8%. Calculate the net proceeds and the gain or loss on the disposal of receivables to Concord Financing Ltd. Net proceeds $ on disposal of receivables $ Prepare the journal entry on the books of Riverbed Corporation to record the disposal of receivables to Concord Financing Ltd. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit