Question: A company transferred accounts receivable of 10 000 for

A company transferred accounts receivable of $ 10,000 for $ 8,500. Uncollectible accounts are estimated at $ 700, and this amount is already in the allowance for doubtful accounts. Give the required entry, assuming that the transaction is recorded as
(a) A borrowing and
(b) A sale/derecognition. What tests must be assessed to determine the correct accounting treatment?


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Sale on SolutionInn
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  • CreatedFebruary 17, 2015
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