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Please do not copy from Chegg. Only attempt if you are sure about the answer. Solve in a step by step manner, explaining each step.
Please do not copy from Chegg. Only attempt if you are sure about the answer. Solve in a step by step manner, explaining each step.
Chipper Corporation factored $200,000 of accounts receivable without recourse to First National Bank and incurred finance charges of 3%. The bank also withheld 5% for sales returns and allowances. The journal entry to record the sale of receivables by Chipper Corporation would include an :
A. debit to Cash for $200,000
B. debit to Cash for $194,000
C. debit to Cash for $184,000
D.credit to Factoring Revenue for $6,000
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