A company factored $45,000 of its accounts receivable and was charged a 4% factoring fee. The journal entry to record this transaction would include a: Multiple Choice Debit to Cash of $45,000, a debit to Factoring Fee Expense of $1,800, and credit to Accounts Receivable of $46,800. Debit to Cash of $46,800 and a credit to Accounts Receivable of $46,800. Debit to Cash of $45,000 and a credit to Notes Payable of $45,000. Debit to Cash of $43,200, a debit to Factoring Fee Expense of $1,800, and a credit to Accounts Receivable of $45,000. Debit to Cash of $45,000 and a credit to Accounts Receivable of $45,000.
A company factored $45,000 of its accounts receivable and was charged a 4% factoring fee. The journal entry to record this transaction would include a: Multiple Choice Debit to Cash of $45,000, a debit to Factoring Fee Expense of $1,800, and credit to Accounts Receivable of $46,800. Debit to Cash of $46,800 and a credit to Accounts Receivable of $46,800. Debit to Cash of $45,000 and a credit to Notes Payable of $45,000. Debit to Cash of $43,200, a debit to Factoring Fee Expense of $1,800, and a credit to Accounts Receivable of $45,000. Debit to Cash of $45,000 and a credit to Accounts Receivable of $45,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:A company factored $45,000 of its accounts receivable and was charged a 4% factoring fee. The journal entry to record this transaction would include a:
Multiple Choice
Debit to Cash of $45,000, a debit to Factoring Fee Expense of $1,800, and credit to Accounts Receivable of $46,800.
Debit to Cash of $46,800 and a credit to Accounts Receivable of $46,800.
Debit to Cash of $45,000 and a credit to Notes Payable of $45,000.
Debit to Cash of $43,200, a debit to Factoring Fee Expense of $1,800, and a credit to Accounts Receivable of $45,000.
Debit to Cash of $45,000 and a credit to Accounts Receivable of $45,000.
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