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Factoring Fee Expense
A cost incurred by a business when it sells its accounts receivable to a third party (the factor) at a discount.
Accounts Receivable
Funds that clients or customers owe to a company for products or services that have been provided but not yet compensated for.
Necessary Cash
The minimum amount of cash required by a company to carry out its day-to-day operations.
Contra Asset Account
An account on a company's balance sheet representing deductions from the gross amount of an asset, such as accumulated depreciation on fixed assets.
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