On February 1, Anderson, Inc., factors $1,200,000 of accounts receivable. The factor charges a 2 percent fee.
Question:
On February 1, Anderson, Inc., factors $1,200,000 of accounts receivable. The factor charges a 2 percent fee.
Required:
Prepare the journal entry to record the factoring of the accounts receivable on February 1.
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...
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Related Book For 
Cornerstones of Financial and Managerial Accounting
ISBN: 978-0324787351
1st Edition
Authors: Rich Jones, Mowen, Hansen, Heitger
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