Sheffield Corp. factors $2600000 of its accounts receivables without recourse for a finance charge of 3%. The finance company retains an amount equal to 9% of the accounts receivable for possible adjustments. Sheffield estimates the fair value of the recourse liability at $330000. What would be the debit to Cash in the journal entry to record this transaction

$2,288,000

Explanation:

Finance charge = $2,600,000 × 3% = $78,000

Amount retained by the finance company = $2,600,000 × 9% = $234,000

Cash received by Sheffield Corp. = $2,600,000 - $78,000 - $234,000 = $2,288,000

Therefore, the amount that would be debited to Cash in the journal entry to record this transaction is $2,288,000.

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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