Homework Answers
Answer
| Date | Account Titles and Explanation | Debit | Credit |
| Cash | $ 350,625 | ||
| Due from factor | $ 9,375 | ||
| Loss from factor | $ 24,000 | ||
| Recourse liability | $ 9,000 | ||
| Accounts Receivable | $ 375,000 | ||
| (Sale of Receivable recorded) | |||
| Due from factor = $375000*.025 | $ 9,375 | ||
| Loss on factoring = 375000*.04+9000 | $ 24,000 |
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