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question presented below is information for jones company 1 beginning of the year ac 4291936

Question

Presented below is information for Jones Company.

1.

 

Beginning-of-the-year Accounts Receivable balance was$20,800.

2.

 

Net sales (all on account) for the year were $105,400. Jonesdoes not offer cash discounts.

3.

 

Collections on accounts receivable during the year were$88,700.

 

Jones is planning to factor some accounts receivable at the end ofthe year. Accounts totaling $10,200 will be transferred to CreditFactors, Inc. with recourse. Credit Factors will retain 7% of thebalances for probable adjustments and assesses a finance charge of6%. The fair value of the recourse obligation is $1,030.

Prepare the journal entry to record the sale of thereceivablac

 

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