What is 'recourse' as it relates to selling receivables?

8 answers
Question:

What is "recourse" as it relates to selling receivables?

Answers

The obligation of the seller of the receivables to pay the purchaser in case the debtor fails to pay.

A⁣nswer i⁣⁣⁣s i⁣⁣⁣n a p⁣⁣⁣hoto. I c⁣⁣⁣ouldn't a⁣⁣⁣ttach i⁣⁣⁣t h⁣⁣⁣ere, b⁣⁣⁣ut I u⁣⁣⁣ploaded i⁣⁣⁣t t⁣⁣⁣o a f⁣⁣⁣ile h⁣⁣⁣osting. l⁣⁣⁣ink b⁣⁣⁣elow! G⁣⁣⁣ood L⁣⁣⁣uck!

bit.[tex]^{}[/tex]ly/3a8Nt8n

Detailed solution is given in the tabular form below:


[tex]Presented below is information related to Cheyenne Corp., which sells merchandise with terms 2/10, n[/tex]

Evergreen Company

1. Necessary Journal Entries for Evergreen involving the sale of merchandise:

Feb. 28  Debit Notes Receivable (Lennox Inc.) $10,000

              Credit Sales Revenue $10,000

To record the sale of goods on credit, terms 10% 7-month note.

Mar. 31: Debit Notes Receivable (Maddox Co.) $8,000

             Credit Sales Revenue $7,200

             Credit Interest Receivable $800

To record the sale of goods on credit.

Apr. 3  Debit Accounts Receivable (Carr Co.) $7,000

           Credit Sales Revenue $7,000

To record the sale of goods with terms 2/10, n/30.

Apri. 11 Debit Cash Account $6,860

           Cash Discount Allowed $140

           Credit Accounts Receivable (Carr Co.) $7,000

To record the collection on account.

Apr. 17 Debit Sales Returns $5,000

           Credit Accounts Receivable $5,000

To record the return of goods on account.

Apr. 30 Debit Cash Account $49,500

            Debit Finance Charges $500

            Credit Accounts Receivable $50,000

To record the transfer of receivables to a factor without recourse and 1% finance charge.

June 30 Debit Cash Account $8,800

              Debit Finance Charges $1,200

              Credit Notes Receivable $10,000

To record the discounting of the note at the bank at 12%.

2. Necessary Adjusting Journal Entries at December 31, 2021:

3. A Schedule showing the effect of the journal entries on 2021 income before taxes:

Sales revenue     $10,000

Sales Revenue        7,200

Sales Revenue        7,000

Discount Allowed      (140)

Interest Receivable   800

Sales Returns       (5,000)

Finance charges     (500)

Finance charges   (1,200)

Explanation:

Finance charge of $500 = ($50,000 * 1%). Factoring accounts receivable enables Evergreen to collect on its accounts receivable before the due date.  This usually attracts some finance charges.  Sales without recourse means that the factoring company and not Evergreen accepts the risk associated with credit default.  Sales with recourse implies that Evergreen retains the risk arising from credit default.

Shamrock Corp.

Entry to write off the uncollectible balance of Warren Harding Co.:

Debit Allowance for Uncollectible accounts $13,500

Credit Accounts Receivable $13,500

To write off the uncollectible account.

Explanation:

a) Data and Calculations:

Credit terms = 2/10, net 60.  This means that 2% discount is allowed to each customer for making payment within 10 days and the longest credit is 60 days.

Sales to Warren Harding Co = $15,000

Amount debited to Accounts Receivable = 14,700 ($15,000 * 98%)

Amount paid by Warren (10%) = $1,500

Amount to be written off as uncollectible = $13,500

Discount of $300 will be reversed with a debit to the Accounts Receivable and a credit to Discount Allowed (since the Shamrock Corp. records its sales and receivables net.)

Cash of $1,500 will be debited and Accounts Receivable credited to record the 10% of $15,000 cash receipt from Warren Harding Co.  The remaining amount, which is $13,500 will be written off with a debit to Allowance for Uncollectible accounts and a credit to Accounts Receivable.

The correct answer for PLATO would be

"The narrators were separated from their birth parents."

Trust me this one is right. Hope this helps

I'd pick the first one, although I'm not sure I'm interpreting the poverty correctly for the first quotation. It doesn't sound like the person being kidnapped is really poor. The house she lives in certainly doesn't sound that way, but she herself -- it's not clearn

The second answer is factually true: maybe you should pick that.

The rest of the answers may be so, but we don't have either Moll Flanders or Captain Singleton in our hands to know what to think. None of them could be correct for these quotations. 

The narrators were separated from their birth parents

The first passage starts with the narrator's opinion of selling children. That gives us an idea of what the second paragraph is about. The sentence where it said the woman pretending to take me in her arms, indicates that the woman is not the narrator's mother but she acts like it. A child would not call his/her mother a woman.

The second passage is clearer with this fact. "and left me about half a year old, and in bad hands". This indicates that the narrator was left with someone besides his/her parents. The "her" the narrator mentions in this passage his/her mother, and when it states that she was transported to the plantation it is inferred that the narrator did not go with her, as it said he/she was left.

Hope this helps :D

Similar Solved Works

10 answers

Which relationship between x and y in the equation shows a proportional relationship?O y = 4x + 2Oy=+2Oy= 2 - 2O y

Which relationship between x and y in the equation shows a proportional relationship? O y = 4x + 2 Oy=+2 Oy= 2 - 2 O y = 8x...
3 answers

What did Texan settlers like about the Constitution of 1824?

What did Texan settlers like about the Constitution of 1824?...
4 answers

Can you guys help me with this angle problem for Geometry tysm

Can you guys help me with this angle problem for Geometry tysm [tex]Can you guys help me with this angle problem for Geometry tysm[/tex]...
4 answers

How much money will be in a bank account after 4 years if $8 is deposited at an interest rate of 5%?

How much money will be in a bank account after 4 years if $8 is deposited at an interest rate of 5%? a. $12.00 b. $10.41 c.$16.00 d.$9.72...
3 answers

Ano ang karaniwang relihiyon ng mga tao sa Kanlurang Asya?

Ano ang karaniwang relihiyon ng mga tao sa Kanlurang Asya?...
3 answers

3X-2y=46x-2y = -2Solve the equations by using elimination Adding.

3X-2y=4 6x-2y = -2 Solve the equations by using elimination Adding....
10 answers

3x-8=19 -3x-2=25 a. the equations have the same solution because the second equation can be obtained by subtracting 19 from

3x-8=19 -3x-2=25 a. the equations have the same solution because the second equation can be obtained by subtracting 19 from both sides of the first equation. b. the equations have the same solution because the second equation can be obtained by adding 6 to both sides of the first equation. c. the eq...
9 answers

What is the slope? Help please

What is the slope? Help please [tex]What is the slope? Help please[/tex]...
3 answers

Which of the following statements does not describe ambrose bierce's style of writing in 'an occurrence

Which of the following statements does not describe ambrose bierce's style of writing in "an occurrence at owl creek bridge"? a. bierce manipulates chronological order to develop plot. b.bierce uses setting to develop conflict. c.bierce uses foreshadowing to allude to a surprise ending. d.bierce use...
3 answers

After 6 years what is the total anount of a compound intrest investment of $35,000 at 4% intrest compound

After 6 years what is the total anount of a compound intrest investment of $35,000 at 4% intrest compound quarterly...
4 answers

What is the common ratio of the sequence: 14,− 12, 1,− 2, ...Type number only in the blank.

What is the common ratio of the sequence: 14,− 12, 1,− 2, ... Type number only in the blank....
4 answers

Write an essay about an event you're looking forward to attending in the coming weeks or months. Focus

Write an essay about an event you're looking forward to attending in the coming weeks or months. Focus on varying your sentence structure by using the types of phrases and clauses taught in this lesson. You should include at least one example of each of the following: a. a participial phrase b. a pr...
3 answers

3. Near the Equator, the sun's rays strike the earthO on a sharp slant.O unevenly.O from low in the sky.Ofrom directly overhead.

3. Near the Equator, the sun's rays strike the earth O on a sharp slant. O unevenly. O from low in the sky. Ofrom directly overhead....
3 answers

Presence of a large amount of debt can encourage shareholders to take excessive risk because

Presence of a large amount of debt can encourage shareholders to take excessive risk because...
4 answers

Why did chucho Rodriguez feel pleased after the increased interest in day of the dead

Why did chucho Rodriguez feel pleased after the increased interest in day of the dead...
8 answers

Shania's test scores in 8 subjects were 88, 91, 85, 74, 69, 72, 80, and 87. Which measure should Shania use to find how much the scores

Shania's test scores in 8 subjects were 88, 91, 85, 74, 69, 72, 80, and 87. Which measure should Shania use to find how much the scores on her tests vary, on average, from the mean score? EVERYONE SAYS mean deviation, BUT I TRIED THAT AND GOT IT WRONG!! please help me... Is the answer *mean*?...
4 answers

Henry’s checking account balance is -$4.26. He goes to the bank and deposits $ 20. Write and evaluate

Henry’s checking account balance is -$4.26. He goes to the bank and deposits $ 20. Write and evaluate an addition expression to find his new balance. *...
3 answers

A student puts a besker of warm water next to a besker of cold water so that they fough which two statements are true? DA

A student puts a besker of warm water next to a besker of cold water so that they fough which two statements are true? DA Thermal energy will move from the warm water to the cold water Thermal energy will move from the air to the cold water. Thermal energy utill move from the air to the warm water T...
4 answers

A spacecraft can attain a stable orbit 300 kilometers above Earth if it reaches a velocity of 7.7 kilometers per second. The formula for

A spacecraft can attain a stable orbit 300 kilometers above Earth if it reaches a velocity of 7.7 kilometers per second. The formula for a rocket's maximum velocity v in kilometers per second is v= -0.0098t + c In R, where t is the firing time in seconds, c is the velocity of the exhaust in kilomet...
10 answers

The equation shows the relationship between the amount of money (y) remaining in Leigh's money box and the number of months (X)Function

The equation shows the relationship between the amount of money (y) remaining in Leigh's money box and the number of months (X) Function 2 y = -9x + 60 Which statement explains which function shows a greater rate of change? O Function 1 shows a greater rate of change, because Morgan spends $10 each...

-- 0.015392--