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Presented below is information for Jones Company Beginning-of-the-year Accounts Receivable balance was $19200 Net sales all on account for the year were $102500 Jones does not offer

Presented below is information for Jones Company.

1.   Beginning-of-the-year Accounts Receivable balance was $19,200.
2.   Net sales (all on account) for the year were $102,500. Jones does not offer cash discounts.
3.   Collections on accounts receivable during the year were $90,900.


Jones is planning to factor some accounts receivable at the end of the year. Accounts totaling $10,600 will be transferred to Credit Factors, Inc. with recourse. Credit Factors will retain 7% of the balances for probable adjustments and assesses a finance charge of 6%. The fair value of the recourse obligation is $1,060.

Prepare the journal entry to record the sale of the receivables.

Compute JonesAc€?cs accounts receivable turnover ratio for the year, assuming the receivables are sold.

Jun 23 2020 View more View Less

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