On May 31,a Company Had a Balance in Its Accounts

question 121

Essay

On May 31,a company had a balance in its accounts receivable of $103,895.Record the company's following transactions for June:
$\begin{array}{|l|l|}\hline\text { June 2 } & \text { Sold merchandise on account, } \$ 14,000 \\\hline \text { June 8 } & \begin{array}{l}\text { Sold } \$ 15,000 \text { worth of accounts receivable to First Bank. First Bank charged a } \\3 \% \text { factoring fee. }\end{array} \\\hline \text { June 20 } & \begin{array}{l}\text { Borrowed } \$ 30,000 \text { cash from First Bank, pledging } \$ 31,500 \text { worth of accounts } \\\text { receivable as collateral for the loan. }\end{array}\\\hline\end{array}$

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Definitions:

Trade Restrictions

Regulations and policies that governments enact to control the free trade and exchange of goods and services across borders.

Import Quota

A restriction enforced by the government on the volume or price of merchandise that may be imported into a country.

Tariff

A tariff is a tax imposed by a government on imported or exported goods to regulate trade, often to protect domestic industries.

Free Trade

An economic policy that allows imports and exports between countries with minimal governmental restrictions or tariffs.