A Company Factored $45,000 of Its Accounts Receivable and Was

question 116

Multiple Choice

A company factored $45,000 of its accounts receivable and was charged a 4% factoring fee.The journal entry to record this transaction would include a:

• A)Debit to Cash of $45,000,a debit to Factoring Fee Expense of $1,800,and a credit to Accounts Receivable of $46,800.
• B)Debit to Cash of $45,000 and a credit to Accounts Receivable of $45,000.
• C)Debit to Cash of $43,200,a debit to Factoring Fee Expense of $1,800,and a credit to Accounts Receivable of $45,000.
• D)Debit to Cash of $46,800 and a credit to Accounts Receivable of $46,800.
• E)Debit to Cash of $45,000 and a credit to Notes Payable of $45,000.

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Definitions:

Control Groups

In experiments, groups whose members do not obtain the treatment, while other conditions are held constant.

Cause and Effect

The principle that an action or event will produce a certain response or outcome (effect) directly attributable to that action or event (cause).

Introspection

The examination of one's own thoughts and feelings as a way of gaining insight into one's mind and character.

Wilhelm Wundt

Considered the father of modern psychology, he established the first psychological laboratory in 1879, laying the foundations for experimental psychology.