A Company Factored $35,000 of Its Accounts Receivable and Was

question 78

True/False

A company factored $35,000 of its accounts receivable and was charged a 2% factoring fee.The journal entry to record this transaction would include a debit to Cash of $35,000,a debit to Factoring Fee Expense of $700,and a credit to Accounts Receivable of $35,700.

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Definitions:

Hygiene Factors

Refer to conditions such as salary, company policies, and working conditions that can lead to dissatisfaction if absent but do not necessarily motivate employees when present.

Absolute Effects

The total, overall impact of a variable or intervention, without comparison to any control or other group.

Direct Effects

Immediate impacts or outcomes that directly result from a specific cause or action without intermediate steps.

Indirect Effects

Outcomes that are not directly caused by an action but occur as a secondary or subsequent result of it.