riole Incorporated factored $ 146,800 of accounts receivable with Waterway Factors Inc. on a without-recourse basis. Waterway assesses a 3% finance charge of the amount of accounts receivable and retains an amount equal to 7% of accounts receivable for possible adjustments. Prepare the journal entry for Oriole Incorporated and Waterway Factors to record the factoring of the accounts receivable to Waterway.

riole Incorporated factored $ 146,800 of accounts receivable with Waterway Factors Inc. on a without-recourse basis. Waterway assesses a 3% finance charge of the amount of accounts receivable and retains an amount equal to 7% of accounts receivable for possible adjustments. Prepare the journal entry for Oriole Incorporated and Waterway Factors to record the factoring of the accounts receivable to Waterway.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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