A Company Factored $45,000 of Its Accounts Receivable and Was

question 46

Multiple Choice

A company factored $45,000 of its accounts receivable and was charged a 4% factoring fee. The journal entry to record this transaction would include a:

• A) Debit to Cash of $45,000, a debit to Factoring Fee Expense of $1,800, and a credit to Accounts Receivable of $46,800.
• B) Debit to Cash of $45,000 and a credit to Accounts Receivable of $45,000.
• C) Debit to Cash of $43,200, a debit to Factoring Fee Expense of $1,800, and a credit to Accounts Receivable of $45,000.
• D) Debit to Cash of $45,000 and a credit to Notes Payable of $45,000.
• E) Debit to Cash of $46,800 and a credit to Accounts Receivable of $46,800.

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Definitions:

Normal Model

A distribution of probability that exhibits symmetry around the mean, demonstrating that data points close to the mean occur more frequently than those far from it.

Volumes

Quantities of three-dimensional space enclosed within a boundary or the contents within a container, measured in cubic units.

Normal Model

A symmetric probability distribution around the mean, indicating that occurrences of data are more common close to the mean than far from it.

Snowfall

The precipitation of flakes of crystalline water ice from clouds.