Question: Problem 8-11. with clear explanation and formatting please. Thank you! Problem 8-11 (IAA) A factor has agreed to purchase selected accounts receivable from Epic Company.

Problem 8-11. with clear explanation and formatting please. Thank you!

Problem 8-11 (IAA) A factor has agreed to purchase selected accounts receivable from Epic Company. The factor charged 5% commission and 20% holdback. The following accounts are sold on July 26: Invoice date Customer Amount July 23 300,000 July 25 500,000 July 24 200,000 On July 28, customer B was granted a credit of P50,000 for returned merchandise. Final settlement is made with the factor on August 31. Required: Prepare journal entries to record the transactions on the books of Epic Company

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