Gipson Furniture Factors $700,000 of Receivables to Kwik Factors, Inc

question 81

Short Answer

Gipson Furniture factors $700,000 of receivables to Kwik Factors, Inc.Kwik Factors assesses a 3% service charge on the amount of receivables sold.Gipson Furniture factors its receivables regularly with Kwik Factors.What journal entry does Gipson make when factoring these receivables?

---

Definitions:

Aggressiveness

A behavior characterized by being assertive, bold, and often forceful, potentially aiming to dominate or control.

Major Components

Fundamental parts or elements that make up a system, machine, or compound.

Authority Figure

An individual who holds power or influence over others in a particular context, often due to position, knowledge, or expertise.

Group Norms

Shared guidelines or rules that a group follows, which dictate expected behaviors and attitudes of its members.