A company transferred accounts receivable of $ 10,000 for $ 8,500. Uncollectible accounts are estimated at $

Question:

A company transferred 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?

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...