In Recording the Sale of Accounts Receivable, the Commission Charged

question 19

Multiple Choice

In recording the sale of accounts receivable, the commission charged by a factor is recorded as

• A)Bad Debt Expense.
• B)Commission Expense.
• C)Loss on Sale of Receivables.
• D)Service Charge Expense.

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Definitions:

Postbox Rule

A principle in contract law that an offer is considered accepted when the acceptance letter is dispatched, not when it is received.

Time of Mailing

The specific date and time at which mail is officially accepted by a postal service for delivery.

Postbox Rule

A legal principle that an offer is considered accepted once the acceptance is dispatched by the offeree, not when it is received by the offeror.

Elephant Garlic

A large, mild-flavored variety of garlic that resembles a bulb of leek rather than a true garlic.