Which of the Following Would Be Correct If a Company

question 38

Multiple Choice

Which of the following would be correct if a company factored $2,500,000 of receivables with a 2 percent fee?

• A)$2,450,000 credit to cash
• B)$50,000 debit to factoring fee expense
• C)$2,500,000 debit to accounts receivable.
• D)$50,000 debit to factoring fee receivable.