A Company Sells $900,000 of Accounts Receivable to a Factor

question 28

Multiple Choice

A company sells $900,000 of accounts receivable to a factor for cash less a 2% service charge. The entry to record the sale should not include a

• A) debit to Interest Expense for $18,000.
• B) debit to Cash for $882,000.
• C) debit to Service Charge Expense for $18,000.
• D) credit to Accounts Receivable for $900,000.