On December 1, Newton Enterprises sells $100,000 of accounts receivable to a factor, receives 85% of the

Question:

On December 1, Newton Enterprises sells $100,000 of to a factor, receives 85% of the value of the factored accounts, and is charged a 12% commission on the gross amount of the factored
Prepare Newton Enterprises’ journal entry.

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...