On October 1, 2020, Bramble Company sells (factors) $712000 of receivables to Milago Factors, Inc. Milago assesses a service charge of 3% of the amount of receivables sold. The journal entry to record the sale by Bramble will include a debit of $21360 to Service Charge Expense. O a debit of $733360 to Cash. O a debit of $712000 to Accounts Receivable. O a credit of $733360 to Cash.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Question
Please don't give image format and no chatgpt answer
On October 1, 2020, Bramble Company sells (factors) $712000 of receivables to Milago Factors, Inc. Milago assesses a service charge
of 3% of the amount of receivables sold. The journal entry to record the sale by Bramble will include
O a debit of $21360 to Service Charge Expense.
O a debit of $733360 to Cash.
O a debit of $712000 to Accounts Receivable.
O a credit of $733360 to Cash.
Transcribed Image Text:On October 1, 2020, Bramble Company sells (factors) $712000 of receivables to Milago Factors, Inc. Milago assesses a service charge of 3% of the amount of receivables sold. The journal entry to record the sale by Bramble will include O a debit of $21360 to Service Charge Expense. O a debit of $733360 to Cash. O a debit of $712000 to Accounts Receivable. O a credit of $733360 to Cash.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Receivables Management
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education