Question 1 On bme 2019. XYZ Company factored receivables of $700,000 to ABC Company. ABC Company assesses a finance charge of 1% of the receivables and retains 4% of the receivables. Aseme that XYZC eeivables on a without guarantee (without recourse) basis. The journal entry to be recorded by XYZ company is: 1 points: Cash Fussuce charge. 665,000 .7,000 Due from tactor 28,000 Recourse liability. 700,000 . Accounts receivable .700,000 Interest revenues.. ...7,000 Due to customer.. .28,000 Cash 665,000 Cash Loss on sales of receivable. Due from factor Accounts receivable. .665,000 7,000 .28,000 700,000 OD Accounts receivable 700,000 Interest revenues.. 35,000 Cash 665,000

AY XV company 200 000.000 37000 2.000 100.0 000