XYZ Company Has Decided to Factor Its Accounts Receivable in Order

question 50

Multiple Choice

XYZ 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.
• B) a credit to Cash.
• C) a debit to Financing Expense.
• D) a credit to Interest Revenue.

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