Journal entry

Show all computations thoroughly and legibly to receive credit! Problem #1 Solve the following two unrelated short problems:

Part a

Aaron Company factors $2,000,000 of its accounts receivables with recourse for a finance charge of 3%. The finance company retains an amount equal to 10% of the accounts receivable for possible adjustments. Aaron estimates the fair value of the recourse liability at $100,000. Required Prepare the journal entry to record this transaction.

Part b

Presented below is information from Pelletier Incorporated: July 1 Sold $20,000 worth of widgets to Rogers Company with terms 2/10, n/30. July 10 Received payment from Rogers for ½ of the July 1 invoice. July 27 Received payment from Rogers for the other ½ of the July 1 invoice. Required Prepare the necessary journal entries to record these transactions assuming: 1. Pelletier uses the gross method. 2. Pelletier uses the net method.

We help you get better grades, improve your productivity and get more fun out of college!!

Homework Answers Online

Free title page

Free reference page

Free formatting

Unlimited revisions

WhatsApp chat

How it works – it’s easy

i

Place your Order

Submit your requirements through our small easy order form. Be sure to include and attach any relevant materials.

Make a payment

The total price of your order is based on the type of assignment, number of pages, academic level and deadline.

i

Order process

We assign the assignment to the most qualified tutor. When the tutor completes the assignment, it is transferred to one of our professional editors to ensure that the assignment meets all of your requirements.

Once complete, we’ll send your assignment via the email provided on the order form.

 It’s that simple. 

Achieve academic success with the best online tutors