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Martinez Incorporated factored $167,800 of accounts receivable with Sandhill Factors Inc. on a without-recourse basis. Sandhill assesses a 2% finance charge of the amount of
Martinez Incorporated factored $167,800 of accounts receivable with Sandhill Factors Inc. on a without-recourse basis. Sandhill assesses a 2% finance charge of the amount of accounts receivable and retains an amount equal to 6% of accounts receivable for possible adjustments. Prepare the journal entry for Martinez Incorporated and Sandhill Factors to record the factoring of the accounts receivable to Sandhill. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation Martinez Debit Credit 1. Cash Due from Factor Loss on Sale of Receivables Accounts Receivable Sandhill 2. Cash Due from Factor Loss on Sale of Receivables Accounts Receivable 152698 5034 10068 110201 8477 9692 167800 121100
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