Maxwell Corporation factored, with recourse, $300,000 of accounts receivable with Huskie Financing. The finance charge is 4%, and 6% was retained to cover sales discounts, sales returns, and sales allowances. Maxwell estimates the recourse obligation at $5,800.

Required:

Prepare Maxwell’s journal entry to record this factoring of its accounts receivable.

Answer rating: 100% (QA)

Heres the journal entry Maxwell Corporation should make to record the factoring of its accounts rece... View the full answer