Assignment Flashcards
1
Q
What is the Formula in determining Cash Received in AR’s assignment?
A
Face amount of Loan
Less Finance Fee
2
Q
Journal Entry for AR’s Assignment?
A
Debit to CASH
Credit to FINANCE CHARGE & NOTES PAYABLE
Dr AR assigned
Cr AR
3
Q
Amount of gain/loss on the transfer of AR?
A
NO GAIN OR LOSS is recognized because assignment of AR is secured borrowing and NOT a SALE
