1. Suppose the checking account in your business is overdrawn by $200 and there are no other accounts with this bank. State specifically where (and how) this credit balance should be shown in your financial statements.

2. Assume the same information above except that you also have $300 in another checking account at the same bank. State how this additional information would change, if at all, the way the credit balance in the checking account should be shown in your financial statements.

3. List at least two reasons why receivables might be factored before they are due.