The company purchased the best plan of all.
15 The company factors $200,000 of receivables with Chase on a with recourse basis, Chase charges
3% finance fee of receivables and retains 9% of receivable for adjustments. The company calculates
that this recourse liability (bad debts) has a fair value of $18,000.
17 The company shipped goods costing $10,000 to Brooklyn Electronics on consignment. The sales
agreement states that Brooklyn Electronics has 10 days to either sell the goods and pay our company
$14,000 for them or to return the goods to our company.
20 Paid shareholders the cash dividend of $10,000 declared on March 6.
22 The company collected $20,000 cash in advance from Queens Electronics for Merchandise to be
delivered next week; the cost of the merchandise is $ 12,000.
28 Brooklyn Electronics did not return the merchandise on consignment.
29 Shipped and delivered the Merchandise to Queens Electronics.
31 Recorded depreciation expense of $2,000 for the month on the furniture, equipment & van.
31 Recorded the amount of prepaid insurance that expired for the month.