Southern Textiles decides to sell ($ 700,000) of its accounts receivable to First Central Factors Inc. First

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Southern Textiles decides to sell \(\$ 700,000\) of its accounts receivable to First Central Factors Inc. First Central Factors assesses a service charge of \(2 \%\) of the amount of receivables sold. Prepare the journal entry that Southern Textiles makes to record this sale.

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Financial Accounting Tools For Business Decision Making

ISBN: 9780471169192

1st Edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

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