Whispering Incorporated factored $126,900 of accounts receivable with Metlock Factors Inc. on a without-recourse basis. Metlock assesses a 2% fınance charge of the amount of accounts receivable and retains an amount equal to 5% of accounts receivable for possible adjustments. Prepare the journal entry for Whispering Incorporated and Metlock Factors to record the factoring of the accounts receivable to Metlock. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Whispering Incorporated factored $126,900 of accounts receivable with Metlock Factors Inc. on a without-recourse basis. Metlock
assesses a 2% finance charge of the amount of accounts receivable and retains an amount equal to 5% of accounts receivable for
possible adjustments.
Prepare the journal entry for Whispering Incorporated and Metlock Factors to record the factoring of the accounts receivable to
Metlock. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically
indented when the amount is entered. Do not indent manually.)
Transcribed Image Text:Whispering Incorporated factored $126,900 of accounts receivable with Metlock Factors Inc. on a without-recourse basis. Metlock assesses a 2% finance charge of the amount of accounts receivable and retains an amount equal to 5% of accounts receivable for possible adjustments. Prepare the journal entry for Whispering Incorporated and Metlock Factors to record the factoring of the accounts receivable to Metlock. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
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