on may 1 onyx inc factored 600 000 of accounts receivable with cookie finance withou 4372380

On May 1, Onyx, Inc. factored $ 600,000 of accounts receivable with Cookie Finance without recourse. Cookie Finance assessed a finance charge of 6% of the total accounts receivable factored and retained an amount equal to 2% (i. e., there is a 2% hold back). Assume the transaction is a sale. Required a. Prepare the journal entry required on Onyx’s books on May 1. b. Now assume Onyx factors the $ 600,000 of accounts receivable with Cookie Finance with recourse. The recourse provision has a fair value of $ 10,000. Prepare the journal entry required on Onyx’s books on May 1. View Solution:
On May 1 Onyx Inc factored 600 000 of accounts

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