Multiple Choice
A company sells $800,000 of accounts receivable to a factor for cash, incurring a 2% service charge.The entry to record the sale should not include a
A) debit to Interest Expense for $16,000.
B) debit to Cash for $784,000.
C) debit to Service Charge Expense for $16,000.
D) credit to Accounts Receivable for $800,000.
Correct Answer:
Verified
Correct Answer:
Verified
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