Caymen Supplies Frequently Assigns Its Accounts Receivable in Order to Obtain

question 34

Essay

Caymen Supplies frequently assigns its accounts receivable in order to obtain immediate cash.
Required:
Prepare journal entries for the following:
a. The company assigned $1,340,000 of accounts receivable, receiving a 93% advance less service charges of $25,800.
b. The company collected $830,000 of these receivables and remitted the collection to the finance company along with one month's interest at 15%.

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Definitions:

Effectiveness

The degree to which objectives are achieved and targeted results are fulfilled within an organization or system, often used as an indicator of success.

Organizational

Relating to the structure or functioning of an organization, including its systems, policies, and procedures.

Diverse Team

A group composed of members with varying backgrounds, skills, perspectives, and identities, which can enhance creativity and innovation.

Homogeneous Team

A team comprised of members with similar backgrounds, skills, and perspectives, often leading to uniformity in decision-making and problem-solving approaches.