Assuming That the Transaction Was a Factoring Arrangement Without Recourse,which $\quad$

question 17

Multiple Choice

Assuming that the transaction was a factoring arrangement without recourse,which one of the following entries will Ritter make?

• A) DR Cash\(\quad\)100,000
• CR Accounts receivable\(\quad\)100,000
• B) \(\begin{array}{lr}
• \text { DR Cash } & 94,000 \\
• \text { DR Loss on sale of receivables } & 6,000\\\text { CR Accounts receivable }&&100,000
• \end{array}\)
• C) \(\begin{array}{lr}
• \text { DR Cash } & 94,000 \\
• \text { DR Allowance for doubtful accounts } & 3,500 \\
• \text { DR Loss on sale of receivables } & 2,500\\\text { CR Accounts receivable }&&100,000
• \end{array}\)
• D) \(\begin{array}{lrr}
• \text { DR Cash } & 94,000 & \\
• \text { DR Loss on sale of receivables } & 6,000 & \\
• \text { CR Due to Hisker Enterprises } & & 100,000
• \end{array}\)

Calculate net operating income under a standard cost system.

Comprehend the purchase and usage process of raw materials in manufacturing.

Understand how to apply fixed and variable costs to the work in process inventory.

Analyze the financial implications of closing standard cost variances.

---

Definitions:

Independent Variable

The variable in a study that is manipulated or changed by the researcher to investigate its effect on another variable (the dependent variable).

Mood Transitioning

The process or experience of changing from one emotional state to another, which can be influenced by a variety of internal and external factors.

Evaluate

means to systematically determine the merit, value, or significance of something, often used in the context of assessing programs or research findings.

True Scores

In psychometrics, the accurate measurement of a concept or construct that a test intends to measure, in the absence of error.