Chapter 7 - Cash and Receivables - Review and Practice - Brief Exercises - Page 363: BE7-11

Wood Inc. Cash ........................................................................................ 138,000 Due from Factor........................................................................ 9,000* Loss on Sale of Receivables................................................... 10, 500** …………….Accounts Receivable................................................................ 100,000 …………….Recourse Obligation..................................................................... 7,500

*6% X 150,000 = 9,000 **2% X 150,000 = 3,000 + 7,500 = 10, 500