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  • Singer Corporation Was Involved in The Following Events in The

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    Singer Corporation received two notes receivable for merchandise: a $5,000 note from Barney Manufacturing with 11% interest for 90 days, and a $6,000 note from Dillon Construction with 10% interest for 60 days. Singer then sold the notes to a bank at 12% with $1,500 estimated recourse liability. The Dillon note was later paid while Barney defaulted, resulting in a charge to Singer's bank account.

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    Singer Corporation Was Involved in the Following Events in The

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    Singer Corporation received two notes receivable for merchandise: a $5,000 note from Barney Manufacturing with 11% interest for 90 days, and a $6,000 note from Dillon Construction with 10% interest for 60 days. Singer then sold the notes to a bank at 12% with $1,500 estimated recourse liability. The Dillon note was later paid while Barney defaulted, resulting in a charge to Singer's bank account.

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    54 views1 page

    Singer Corporation Was Involved in The Following Events in The

    Uploaded by

    Freelance Worker
    Singer Corporation received two notes receivable for merchandise: a $5,000 note from Barney Manufacturing with 11% interest for 90 days, and a $6,000 note from Dillon Construction with 10% interest for 60 days. Singer then sold the notes to a bank at 12% with $1,500 estimated recourse liability. The Dillon note was later paid while Barney defaulted, resulting in a charge to Singer's bank account.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    Singer Corporation was involved in the following events in

    the #2458
    Singer Corporation was involved in the following events in the current year:June 30 Barney
    Manufacturing gives Singer a $5,000, 11%, 90-day note for merchandise purchased.July 15
    Dillon Construction Co. gives Singer a $6,000, 10%, 60day note for merchandise originally
    purchased, on account, on April 20 of the current year.30 The Barney and Dillon notes are sold
    with recourse by Singer at its bank at 12%. The estimated fair value of the recourse liability is
    $1,500.Sept. 15 The bank notifies Singer that the Dillon note was paid.30 The bank notifies
    Singer that Barney defaulted on the note and charges the amount of principal, interest, and a
    fee of $10 against Singer's bank account.Required:Prepare the journal entries to record the
    preceding information on Singer’s accounting records. Assume that the company does not
    normally sell its notes. (Assume a 360-day year and round all answers to the nearest
    penny.)View Solution:
    Singer Corporation was involved in the following events in the

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