Accounts Receivable Assigned Prepare Journal Entries for Tanzania Inc For

Essay

Accounts receivable assigned Prepare journal entries for Tanzania Inc for: Cash and Receivables 7 - 33
a)Accounts receivable of $700,000 that were originally recorded using the gross method were
assigned to Chad Finance Co.by Tanzania as security for a loan of $580,000.Chad charged
a 4% commission on the value of the accounts receivable; the interest rate on the note is
11%.
b)During the first month, Tanzania collected $300,000 on assigned accounts after deducting
$1,500 of sales discounts.As well, Tanzania wrote off a $1,100 assigned account as a bad
debt.
c)Tanzania paid Chad the amount collected plus one month's interest on the note.