If company sells its accounts receivables to a factor (such as a finance company), a. the...

 

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If company sells its accounts receivables to a factor (such as a finance company), a. the selling company records a contra-revenue for the fee paid to the factor. b. the selling company remains responsible for collecting cash from the customers. c. the selling company credits accounts receivable for the amount of cash received d. the selling company records a service charge expense. If company sells its accounts receivables to a factor (such as a finance company), a. the selling company records a contra-revenue for the fee paid to the factor. b. the selling company remains responsible for collecting cash from the customers. c. the selling company credits accounts receivable for the amount of cash received d. the selling company records a service charge expense.

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