Question
Beyonc Corporation factors $390,000 of accounts receivable with Kathleen Battle Financing, Inc. on a without recourse basis. Kathleen Battle Financing will collect the receivables. The
Beyonc Corporation factors $390,000 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 Beyonc Corporation will include a debit to Due from Factor of how much?
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