Loss on sale of receivables

Related BrainMass Solutions

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  Usually there is a loss on the sale of receivables and this loss reduces the taxable income of the company.

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  Answer to Question No 1: The purchaser of the accounts receivable assumes the risk of any bad debt. On the date of sale loss on sale of the accounts receivable is recognized equal to the finance charge.

• Accounting Problems & Journalising: Solution Set

  If the firm needs cash urgently, selling receivables is a good way of generating cash. 2. The gain or loss on sale of plant asset is dependant on the book value and the sale price. When an asset is purchased, it is recored at its cost.

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  Based on the partners basis and FMV of its assets - is there any Sec 751 property? B. What is the amount and character of Sue's recognized gain or loss on the sale? What is her remaining basis in his partnership interest?

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  Angela was reading through the financial statements of some publicly traded companies and noticed that they had recorded a loss on sale of receivables. She would like you to explain why companies sell their receivables.

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  A reduction in receivables sold implies that there are more cash sales and as is reported in the notes, the loss on sale of receivables is lower in 2009 as compared to 2008.

• Statement of Cash Flows for Allied Products

  Thanks and good luck. 1) Net Income..............................................70,000 Adjustments for Non-Cash Items Gain on Sale of Investments......................(20,000) Loss on Sale of Equipment.........................6,000 Depreciation