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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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