A Company Factored $45,000 of Its Accounts Receivable and Was

question 33

Multiple Choice

A company factored $45,000 of its accounts receivable and was charged a 3% factoring fee. The journal entry to record this transaction would include a:

• A) Debit to Cash of $45,000, a debit to Factoring Fee Expense of $1,350, and credit to Accounts Receivable of $43,650.
• B) Debit to Cash of $45,000 and a credit to Accounts Receivable of $45,000.
• C) Debit to Cash of $43,650, a debit to Factoring Fee Expense of $1,350, and a credit to Accounts Receivable of $45,000.
• D) Debit to Cash of $46,350 and a credit to Accounts Receivable of $46,350.
• E) Debit to Cash of $45,000 and a credit to Notes Payable of $45,000.

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