Prepare the Necessary Journal Entry for the Following Transaction

question 33

Essay

Prepare the necessary journal entry for the following transaction. Francis Company sold €300,000 of its accounts receivables to a factor. The factor charges a 3% fee.

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Definitions:

Time Tickets

Documentation used to record the amount of time an employee spends on various tasks, contributing to labor cost tracking.

Unit Material Cost

The cost attributed to a single unit of production, including direct materials used in creating that unit.

Physical Units

A method of measuring output or production volume in a process costing system using actual physical units.

Total Costs

The complete sum of all expenses incurred by a business in producing goods or services, including fixed and variable costs.