Moon Incfactors $1,000,000 of Its Accounts Receivables with Guarantee (Recourse) for for a Finance

question 32

Multiple Choice

Moon Inc.factors $1,000,000 of its accounts receivables with guarantee (recourse) for a finance charge of 4%.The finance company retains an amount equal to 8% of the accounts receivable for possible adjustments.What would be the debit to Cash in the journal entry to record this transaction?

• A)$1,000,000.
• B)$960,000.
• C)$880,000.
• D)$780,000.