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Q8.10: On March 17, Rollo's Antiques factors $1,000 of receivables to Arco Factor Company, Arco charges service fee of 2% of the amount of receivables

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Q8.10: On March 17, Rollo's Antiques factors $1,000 of receivables to Arco Factor Company, Arco charges service fee of 2% of the amount of receivables sold. The entry to record this transaction would include a A credit to Service Charge Expense of $20. B debit to Cash of $1,000 debit to Cash of $980. D credit to Cash of $980

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