Question
Alpha Inc. wants to dispose of $100,000 of its receivables by selling them to the bank in exchange for cash. The bank charges a 5%
Alpha Inc. wants to dispose of $100,000 of its receivables by selling them to the bank in exchange for cash. The bank charges a 5% factoring fee. The transaction will include a debit to:
a. Factoring Expense $5,000
b. Cash $100,000
c. Interest Expense $10,000
d. Accounts Receivable $95,000
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Advanced Accounting
Authors: Gail Fayerman
1st Canadian Edition
9781118774113, 1118774116, 111803791X, 978-1118037911
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