Trevino Company Has Decided to Factor Its Accounts Receivable in Order

question 36

Multiple Choice

Trevino Company has decided to factor its accounts receivable in order to get the immediate receipt of cash. The journal entry to record the factoring of the receivables would include:

• A)a debit to Accounts Receivable and a credit to Cash.
• B)a debit to Cash and a credit to Accounts Receivable.
• C)a debit to Cash, debit to Financing Expense and credit to Accounts Receivable.
• D)a debit to Cash, credit to Interest Revenue and credit to Accounts Receivable.

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Definitions:

Level of Significance

Level of significance denotes the threshold under which the null hypothesis is rejected in a statistical test, commonly represented by alpha (α).

Treatment

An intervention or condition applied to members of an experimental group in a study to observe its effects.

Reaction

A process or change that occurs in response to an action, event, or stimulus.

Age at Retirement

The specific age or period in one’s life when they decide to permanently withdraw from the workforce.