OH Hardware Store factors $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject: acounting

Transcribed Image Text:DH Hardware Store factors $100,000 of receivables to Friendly Factors
Enterprise. Friendly Factors assesses a service charge of 2% on the factored
receivables. The hardware store's required entry to record the factored
receivables results in a $2,000
decrease in assets and a $2,00 increase in stockholders' equity.
decrease in assets and stockholders' equity.
decrease in liabilities and stockholders' equity.
increase in liabilities and a $2,000 decrease in stockholders' equity.
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