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Entel Inc factored 100000 of its accounts receivable without recourse with a factor

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Entel Inc factored 100000 of its accounts receivable without recourse with a factor;Entel Inc. factored $100,000 of its accounts receivable without recourse with a factor and received $80,000. Of the $20,000 difference, $8,000 was the financing fee and the remainder was held back for sales adjustments. The firm and the factor agree to share equally the cost of any sales adjustments exceeding $12,000. Actual sales adjustments amounted to $14,000, the remaining amount of receivables was collected.;Entel's entry to record the factoring of accounts receivable will include;dr. receivable from factor $8,000;dr. receivable from factor $20,000;dr. cash $92,000;dr. receivable from factor $12,000

 

Paper#28412 | Written in 18-Jul-2015

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