QUESTION 15 TPol Furnt re tactors ssc o 000 af recevables to Tnp Factors, Inc Tn

Question

QUESTION 15 TPol Furnt re tactors ssc o 000 af recevables to Tnp Factors, Inc Tnp Factors assesses a 2% service charge on the amount of recerables sold TPol Funt to factor recevables regry whTp aciors What journal entery does TrPol make when factoring these receivables? ts o A Cash 900,000 Accounts Recevable Gan on Sale of Receivables 882.000 8,000 O B Cash 882,000 Accounts Receivable 882.000 O C Cash 882 000 18,000 Loss on Sale of Recervables Accounts Receivable 900.000 D Cash 882.000 18,000 Service Charge Expense Accounts Receivable 900,000

Explanation / Answer

Correct answer is D.

Cash 882000

Service charge expense 18000

To account receivables . 900000

Since account receivables were worth $900000 and factoring expense have been paid.

D. Is the most accurate and presentable form of recording a transaction.

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