Question
Beyonc Corporation factors $195,000 of accounts receivable with Kathleen Battle Financing, Inc. on a without recourse basis. Kathleen Battle Financing will collect the receivables. The
Beyonc Corporation factors $195,000 of accounts receivable with Kathleen Battle Financing, Inc. on a without recourse basis. Kathleen Battle Financing will collect the receivables. The receivables records are transferred to Kathleen Battle Financing on August 15, 2017. Kathleen Battle Financing assesses a finance charge of 2% of the amount of accounts receivable and also reserves an amount equal to 4% of accounts receivable to cover probable adjustments.
Instructions:
The entry to record this transaction in the books of Kathleen Battle Financing, Inc will include a credit to Interest revenue of how much?
(Please write your answer without commas or sign of the dollar. For example, if your answer is $10,000, write it 10000)
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