Nicks Incorporated sells $ 2,450,000 of its accounts receivable to Fairfield Factors (FF) without recourse. FF charges

Question:

Nicks Incorporated sells $ 2,450,000 of its to Fairfield Factors (FF) without recourse. FF charges a fee equal to 7% of the receivables factored and holds back an additional 4% as security. FF will return the hold back to Nicks when the receivables are collected. Assuming a sale, prepare the journal entry to record Nicks Incorporated’s sale of the to FF. Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...