Westside Textiles decides to sell $800,000 of its accounts receivable to First Factors Inc. First Factors assesses a service charge of 3% of the amount of receivables sold. Prepare the journal entry that Westside Textiles do.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Please write the answer in handwriting in addition to writing at the top of the page (Masa tarabeh)
Westside Textiles decides to sell
$800,000 of its accounts receivable to
First Factors Inc. First Factors
assesses a service charge of 3% of
the amount of receivables sold.
Prepare the journal entry that
Westside Textiles do.
Transcribed Image Text:Westside Textiles decides to sell $800,000 of its accounts receivable to First Factors Inc. First Factors assesses a service charge of 3% of the amount of receivables sold. Prepare the journal entry that Westside Textiles do.
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