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Assignment of Accounts Receivable Journal Entries
The assignment of accounts receivable journal entries below act as a quick reference, and set out the most commonly encountered situations when dealing with the double entry posting of accounts receivable assignment.
The assignment of accounts receivable journal entries are based on the following information:
- Accounts receivable 50,000 on 45 days terms
- Assignment fee of 1% (500)
- Initial advance of 80% (40,000)
- Cash received from customers 6,000
- Interest on advances at 9%, outstanding on average for 40 days (40,000 x 9% x 40 / 365 = 395)
About the Author
Chartered accountant Michael Brown is the founder and CEO of Double Entry Bookkeeping. He has worked as an accountant and consultant for more than 25 years and has built financial models for all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a degree from Loughborough University.
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