Wood SA factored 150,000 of accounts receivable with Engram Factors, without guarantee of credit loss. Engram assesses

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Wood SA factored €150,000 of accounts receivable with Engram Factors, without guarantee of credit loss. Engram assesses a 2% finance charge of the amount of accounts receivable and retains an amount equal to 6% of accounts receivable for possible adjustments. Prepare the journal entry for Wood SA and Engram Factors to record the factoring of the accounts receivable to Engram.

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Intermediate Accounting IFRS

ISBN: 9781119607519

4th Edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

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