How much additional interest must be paid on september, Accounting Basics

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How much additional interest must be paid on september

In order to resolve its cash flow problems, Town Home Company assigned $420,000 of its accounts receivable to Wargo Finance Company on August 1. Town Home received 85% of the assigned accounts receivable less a service charge of 5% of the cash received. Town Home was also charged 14% interest annually on the outstanding loan balance. By August 31, Town Home had collected $276,000, and remitted this amount plus the interest to date on August 31 to Wargo Finance

Required:

a.Prepare journal entries to record the above assignment transactions on Town Home's books.

b.If Town Home collected an additional $50,000 on outstanding accounts and remitted this to Wargo Finance on September 30, how much additional interest must be paid on September 30?

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Accounting Basics: How much additional interest must be paid on september

Reference No:- TGS0672772

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Recent Questions Asked Accounting Basics

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Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: How much additional interest must be paid on september

Reference No:- TGS0672772

Recent Questions Asked Accounting Basics

Q : What is the ytm for bond

Q : What is the ending balance in the bond payable

Q : What measure of risk is relevant when finding project risk

Q : What is the journal entry to record the reissuance

Q : How much additional interest must be paid on september

Q : Determining the company days sales in receivables

Q : Summary of carla growth as medical assistant

Q : Calculate the pre- and post-tax

Q : What is the maximum internal growth rate consistent

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