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) \(\begin{array}{lrr}
• \text { DR Cash } & 94,000 & \\
• \text { DR Loss on sale of receivables } & 6,000 & \\
• \text { CR Due to Hisker Enterprises } & & 100,000
• \end{array}\)

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Definitions:

Blue Collar

Refers to workers who perform manual labor, often in industries related to manufacturing, construction, and maintenance.

White Collar

Refers to jobs or workers majorly involved in non-manual, office-based work, typically implying a certain social status or level of education.

Social Mobility

The ability of individuals or groups to move within the social hierarchy, which can be upward to a higher economic or social class, or downward.

Visible-Minority Immigrants

Immigrants who are identified as being from racial or ethnic groups that are non-majority in the context of a specific country.