Trevino Company Has Decided to Factor Its Accounts Receivable in Order

question 36

Multiple Choice

Trevino Company has decided to factor its accounts receivable in order to get the immediate receipt of cash. The journal entry to record the factoring of the receivables would include:

• A)a debit to Accounts Receivable and a credit to Cash.
• B)a debit to Cash and a credit to Accounts Receivable.
• C)a debit to Cash, debit to Financing Expense and credit to Accounts Receivable.
• D)a debit to Cash, credit to Interest Revenue and credit to Accounts Receivable.

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