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Orman Co Sold $80,000 of Accounts Receivable to First Savings and and Incurred

question 36

Essay

Orman Co. sold $80,000 of accounts receivable to First Savings and incurred a 3% factoring fee. Prepare the journal entry for Orman Co. to record the sale.


Definitions:

Industry Knowledge

Understanding and information related to a specific industry, including its trends, key players, and dynamics that influence business operations.

Business Income

This refers to the earnings or revenue generated from the business's operations, after subtracting the costs and expenses associated with producing and selling the business's goods or services.

Customer Service

The assistance and support provided by a company to those people who buy or use its products or services.

Total Independence

A state or condition where an entity operates without any external control or influence.

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