A Company Factored $40,000 of Its Accounts Receivable and Was

question 152

True/False

A company factored $40,000 of its accounts receivable and was charged a 1% factoring fee.The journal entry to record this transaction would include a debit to Cash of $39,600,a debit to Factoring Fee Expense of $400,and credit to Accounts Receivable of $40,000.

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Definitions:

Avoidantly Attached

Describes an attachment style where individuals tend to maintain emotional distance and independence in relationships.

Infants

Young children from birth to one year of age, a critical period for developmental milestones.

Caregivers

Individuals who provide care to others, often family members or clients, who need assistance with daily tasks.

Secure Attachment

The attachment style for most infants, who are confident enough to play in an unfamiliar environment as long as the caregiver is present and are readily comforted by the caregiver during times of distress.