WestSide Textiles decides to sell HK$8,000,000 of its accounts receivable to First Factors Ltd. First Factors assesses

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WestSide Textiles decides to sell HK$8,000,000 of its accounts receivable to First Factors Ltd. First Factors assesses a service charge of 3% of the amount of receivables sold. Prepare the journal entry that West- Side Textiles makes to record this sale.
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
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Financial Accounting

ISBN: 978-1118978085

IFRS 3rd edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

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