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Figure 2-2
-Refer to Figure 2-2.Devin works as an attorney for a corporation and is paid a salary in exchange for the legal services he performs.Juan owns office buildings and rents his buildings to companies in exchange for rent payments.If Devin's income is represented by a flow of dollars from Box D to Box B of this circular-flow diagram,then Juan's income is represented by a flow of dollars
Accounts Receivable
Funds owed to a business by its customers for goods or services delivered or used but not yet paid for.
Service Charge Expense
Costs incurred by a company for the services provided by another entity, often including bank fees or utilities.
Factoring Receivables
A financial transaction where a business sells its accounts receivable to a third party at a discount in exchange for immediate cash.
Allowance for Doubtful Accounts
A contra asset account on a company’s balance sheet that represents the amount of receivables it does not expect to collect.
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