A Company Sold $10,000 of Its Accounts Receivable and Was

question 51

Multiple Choice

A Company sold $10,000 of its accounts receivable and was charged a 2% factoring fee. How should the company record this transaction in the journal?

• A)\(\begin{array}{|l|r|r|}
• \hline \text { Cash } & 9,800 & \\
• \hline \text { Factoring Fee Expense } & 200 & \\
• \hline \text { Accounts Receivable } & & 10,000 \\
• \hline
• \end{array}\)
• B)\(\begin{array} { | l | r | r | }
• \hline \text { Cash } & 10,000 & \\
• \hline \text { Accounts Receivable } & & 10,000 \\
• \hline
• \end{array}\)
• C)\(\begin{array} { | l | r | r | }
• \hline \text { Cash } & 10,000 & \\
• \hline \text { Factoring Fee Expense } & & 200 \\
• \hline \text { Accounts Receivable } & & 9,800 \\
• \hline
• \end{array}\)
• D)\(\begin{array} { | l | r | r | }
• \hline \text { Accounts Receivable } & 10,000 & \\
• \hline \text { Factoring Fee Expense } & & 200 \\
• \hline \text { Cash } & & 9,800 \\
• \hline
• \end{array}\)
• E)\(\begin{array} { | l | r | r | }
• \hline \text { Accounts Receivable } & 9,800 & \\
• \hline \text { Factoring Fee Expense } & 200 & \\
• \hline \text { Cash } & & 10,000 \\
• \hline
• \end{array}\)

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Definitions:

Socially Responsible

Being socially responsible indicates that individuals or organizations act in the best interest of society, considering ethical and environmental impacts of their decisions.