Q3. a. How does a company can dispose of its accounts receivable through factoring? Assume that Hendredon Furniture factors $600,000 of receivables to Federal Factors on Nov. 15. Federal Factors assesses a service charge of 2% of the amount of receivables sold. Show the journal entry to record the sale.

b. Inventory records for Dunbar Incorporated revealed the following:

Date	Transaction	Number of Units	Unit Cost
Apr 1	Beginning inventory	500	$2.40
Apr 20	Purchase	400	$2.50

Dunbar sold 700 units of inventory during the month. Calculate ending inventory using weighted-average cost method.

c. Faster Company purchased equipment in 2010 for $104,000 with an estimated salvage value of $8,000 and a 10-year useful life. At December 31, 2016, there was $67,200 in the Accumulated Depreciation account for this equipment using the straight-line method of depreciation. On March 31, 2017, the equipment was sold for $21,000. Prepare the appropriate journal entries to remove the equipment from the books of Faster Company on March 31, 2017.

d. How a company can revise the depreciation rate of a plant or machinery? Jack's Copy Shop bought equipment for $240,000 on January 1, 2018. Jack estimated the useful life to be 3 years with no salvage value, and the straight-line method of depreciation will be used. On January 1, 2019, Jack decides that the business will use the equipment for a total of 5 years. What is the revised depreciation expense for 2019?

e. During 2016, a company sells 200 units of inventory for $50 each. The company has the following inventory purchase transactions for 2016:

Date	Transaction	Units sold	Unit cost	Total cost
Jan 1	Beginning inventory	50	$39	$ 1950
May 5	Purchase	80	38
Nov 3	Purchase	70	70

Actual sales by the company include its entire beginning inventory, 80 units of inventory from the May 5 purchase, and 70 units from the November 3 purchase. Required: Calculate cost of goods sold and ending inventory for 2016 assuming the company uses specific identification.