On May 31, a company had a balance in its accounts receivable of $103,200. Prepare journal entries to record the following transactions for June. Assume the company uses a perpetual inventory system.
June 2 Sold merchandise on account, $12,000. The cost of the merchandise was $7,200. June 8 Sold $15,000 worth of accounts receivable to First Bank. First Bank charged a 4% factoring fee.
June 20 Borrowed $30,000 cash from Second National Bank, pledging $31,500 worth of accounts receivable as collateral for the loan.

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The Answer of On May 31, a company had a balance in its accounts receivable of $103,200. Prepare journal entries to record the following transactions for June. Assume the company uses a perpetual inventory system.
June 2 Sold merchandise on account, $12,000. The cost of the merchandise was $7,200. June 8 Sold $15,000 worth of accounts receivable to First Bank. First Bank charged a 4% factoring fee.
June 20 Borrowed $30,000 cash from Second National Bank, pledging $31,500 worth of accounts receivable as collateral for the loan.

On May 31, a Company Had a Balance in Its