A Company Factored $35,000 of Its Accounts Receivable and Was

question 109

True/False

A company factored $35,000 of its accounts receivable and was charged a 2% factoring fee. The journal entry to record this transaction would include a debit to Cash of $35,000, a debit to Factoring Fee Expense of $700, and credit to Accounts Receivable of $35,700.

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Definitions:

Long-Distance Partners

Refers to individuals in a relationship who are geographically separated by considerable distances, requiring them to maintain their connection through communication methods other than face-to-face.

Close Proximity Partners

Individuals or entities that work or are located near each other, facilitating easier collaboration or interaction.

Break Up

The termination of a relationship, particularly in a romantic context.

Similarity

The state of sharing characteristics or attributes that make entities alike.