A Company Sells $800,000 of Accounts Receivable to a Factor

question 178

Multiple Choice

A company sells $800,000 of accounts receivable to a factor for cash less a 2% service charge. The entry to record the sale should not include a

• A)debit to Interest Expense for $16,000.
• B)debit to Cash for $784,000.
• C)debit to Service Charge Expense for $16,000.
• D)credit to Accounts Receivable for $800,000.

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Definitions:

Negative Symptoms

Symptoms of schizophrenia and other mental health disorders characterized by deficits or loss of normal functions, such as blunted affect or social withdrawal.

Disorganized Speech

A speech pattern where ideas are fragmented and fail to follow logical sequences, often seen in schizophrenia and other psychotic disorders.

Alogia

A significant reduction in speech output or speech content, often seen in schizophrenia and other psychotic disorders.

Positive Symptom

Symptoms of mental health conditions characterized by an excess or distortion of normal functions, such as delusions or hallucinations in schizophrenia.