Please tell me what should be the right answers in the blanks: Thank you! Questi

Question

Please tell me what should be the right answers in the blanks:

Thank you!

Question 1 [] Your answer is partially correct. The controlier for Pronghorn Corporation has reached an agreement with Culver Financing Ltd. to sell a large portion of Pronghorn's past-due accounts receivable. Pronghorn agrees to sell $1,817,000 of accounts receivable to Culver without recourse. Pronghorn's controller estimates that the fair value of Pronghorn's liability to pay Culver for uncollectible accounts is $181,000. Culver will charge Pronghorn 8% of the total receivables balance as a financing fee, and will withhold an initial amount of 9%. Calculate the net proceeds and the gain or loss on the sale of receivables to Culver Financing Ltd. Net proceeds 1490640 326360 on sale of receivables Prepare the journal entry on the books of Pronghorn Corporation to record the sale of receivables to Culver Financing Ltd. (Credit account tities are automotically indented when amount is entered. Do not indent manually. Ifno entry is required, select "No Entry"for the account titles and enter 0 far the amounts.) Account Titles and Explanation Debit Credit Cash 1508110 Due from Factor 163530 Loss on Sale of Receivables 145360 Accounts Receivable 1817000

Explanation / Answer

Net proceeds 1508110 Loss on sale of receivables 145360

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