Are the following statements true or false? Net accounts…
Are the following statements true or false? Net accounts receivable decreases when a company writes off a specific customer’s accounts receivable balance [1]. GAAP requires the allowance method is used for Accounts Receivables. [2] Factoring accounts receivables can be an effective tool for companies to manage cash flow [3] To calculate the present value of an interest bearing notes receivable issued at a discount, one must calculate the present value of the principal and the present value of the interest payments. [4]
Read DetailsWisconsin Corporation factors $500,000 of accounts receivabl…
Wisconsin Corporation factors $500,000 of accounts receivable to Red & White Factors. The receivables were sold with recourse. Red & White charges a fee of 2% as well as retains an amount equal to 6% for probable adjustments. The fair value of recourse obligation is $20,000. What journal entry should Wisconsin Corporation record when they factor the receivables?
Read DetailsOn March 1, 2026 Pink Flamingo Corporation assigned $1,500,0…
On March 1, 2026 Pink Flamingo Corporation assigned $1,500,000 of receivables to Wisconsin State Bank as collateral for a $1,000,000 loan. Wisconsin State Bank charged a fee equal to 2% of the receivables as well as a 8% annual interest rate. The loan is due in 5 years. What journal entry should Pink Flamingo Corporation record on March 1, 2026?
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