Business, 24.04.2021 04:50, Peachyyyyyy978

A note payable was executed by Sterling Inc. to Miami Finance Company. Sterling Inc. used $192,000 of its accounts receivable as collateral for the loan. The contract provided that Miami would advance 85% of the gross amount of the receivables. Sterling Inc. continues to collect payments for the receivables and the cash from customers is then remitted to the finance company. The cash remitted is first applied to the finance charges, with the remainder applied to principal. During the first month, customers owing $131,200 paid cash, less sales returns and allowances of $5,120, originally recorded as a refund liability. The finance charge at the end of the first month was $1,120. During the second month, the remaining receivables were collected in full, except for $1,280 off as uncollectible. Final settlement was effected with the finance company, including payment of an additional finance charge of $480.

Required:
a. Record the entry for Sterling to record the secured borrowing.
b. Record the entries for Sterling to record (1) the collections for the second month and (2) the final payment to Miami.

Answers: 2

Show answers

Other questions on the subject: Business

Business, 21.06.2019 17:10, candaceblanton

Titus manufacturing, inc. provided the following information for the year: purchases - direct materials $91,000 plant utilities and insurance 68,000 indirect materials 11,170 indirect labor 4270 direct materials used in production 99,000 direct labor 117,500 depreciation on factory plant & equipment 4000the inventory account balances as of january 1 are given below. direct materials $44,000 work-in-progress inventory 10,000 finished goods inventory 50,000what is the ending balance in the direct materials account? $135,000 $36,000 $110,170 $6000

Answers: 3

continue

Business, 22.06.2019 06:40, lexhorton2002

Burke enterprises is considering a machine costing $30 billion that will result in initial after-tax cash savings of $3.7 billion at the end of the first year, and these savings will grow at a rate of 2 percent per year for 11 years. after 11 years, the company can sell the parts for $5 billion. burke has a target debt/equity ratio of 1.2, a beta of 1.79. you estimate that the return on the market is 7.5% and t-bills are currently yielding 2.5%. burke has two issuances of bonds outstanding. the first has 200,000 bonds trading at 98% of par, with coupons of 5%, face of $1000, and maturity of 5 years. the second has 500,000 bonds trading at par, with coupons of 7.5%, face of $1000, and maturity of 12 years. kate, the ceo, usually applies an adjustment factor to the discount rate of +2 for such highly innovative projects. should the company take on the project?

Answers: 1

continue

Business, 22.06.2019 09:00, aubreyfoster

What should a food worker use to retrieve ice from an ice machine?

Answers: 1

continue

Business, 22.06.2019 22:40, gracebuffum

In a fixed-term, level-payment reverse mortgage, sometimes called a reverse annuity mortgage, or ram, a lender agrees to pay the homeowner a monthly payment, or annuity, and expects to be repaid from the homeowner’s equity when he or she sells the home or obtains other financing to pay off the ram. consider a household that owns a $150,000 home free and clear of mortgage debt. the ram lender agrees to a $100,000 ram for 10 years at 6 percent. assume payments are made annually, at the beginning of each year to the homeowner. calculate the annual payment on the ram.

Answers: 1

continue

Do you know the correct answer?

A note payable was executed by Sterling Inc. to Miami Finance Company. Sterling Inc. used $192,000 o...