Entel Inc Factored $100,000 of Its Accounts Receivable Without Recourse with with a Factor

question 2

Multiple Choice

Entel Inc. factored $100,000 of its accounts receivable without recourse with a factor and received $80,000. Of the $20,000 difference, $8,000 was the financing fee and the remainder was held back for sales adjustments. The firm and the factor agree to share equally the cost of any sales adjustments exceeding $12,000. Actual sales adjustments amounted to $14,000; the remaining amount of receivables was collected. Entel's entry to record the factoring of accounts receivable will include:

• A) dr. cash $92,000
• B) dr. receivable from factor $12,000
• C) dr. receivable from factor $8,000
• D) dr. receivable from factor $20,000

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Definitions:

Social Support

Refers to the psychological and material resources provided by a network of family, friends, colleagues, and others, which can enhance an individual's ability to cope with stress and hardships.

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A theory that outlines how human beings perceive, think, and understand their world through the interplay of genetic and learned factors.

Cultural Context

The various social, religious, economic, and cultural conditions that influence the life of an individual or community.

Rational Behavior

Decision-making or action taken based on logical, reasoned considerations, often aiming for the most optimal outcome.