March 3 Me ock nc. sells $7 19 600 o its receivables to National Factors nc Nati

ID: 2558588 • Letter: M

Question

March 3 Me ock nc. sells $7 19 600 o its receivables to National Factors nc National Facto s nc assesses a service charge ofits receivables to western Factors Inc. western Factors Inc. assesses a service charge of 4% of the amount ofreceivables sold. repare the entry on Metiock, Inc.' books to record the sale of the receivables. (Credit account titles are a indented when amount is entered. Do not indent manually,) By accessing this Question Assistance, you will leam while you earn points based on the Point Potential Policy set by your instructor Question Attempts: 0 of 5 used SAVE FOR LATERSUBMIT AM answer this question correctly in four attempts or less.

Explanation / Answer

Account Titles and Explanation

Debit

Credit

Cash or Due from factor account (Bal. fig)

$690,816

Loss on Factoring or Factoring Fees (719,600*4%)

$28,784

Accounts Receivable

$719,600

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