Ch6 #11 Newton enterprises journal entry On December 1, Newton Enterprises sells

Question

Ch6 #11 Newton enterprises journal entry On December 1, Newton Enterprises sells $100,000 of accounts receivable to a factor without resource, receives 85% of the value of the factored accounts, and changed a 10% commission on the gross amount of the factored accounts receivable. Newton normally factors its accounts receivable. Prepare Newton's journal entry. For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0" and when required, round your answer to the nearest dollar.

Explanation / Answer

Account title Debit credit cash       [100,000*.85] 85,000 Receivable from factor 50000 Factoring expense 10000 Accounts receivable 100,000

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