Business, 27.08.2020 14:01 Binger4115

Jervis sells $4,400 of its accounts receivable to Northern Bank in order to obtain necessary cash. Northern Bank charges a 4% factoring fee. What entry should Jervis make on to record the transaction? a. Debit Accounts Receivable $4,400; credit Cash $4,400.
b. Debit Cash $4,400; credit Accounts Receivable $4,400.
c. Debit Cash $4,576; credit Factoring Fee Expense $176; credit Accounts Receivable $4,400.
d. Debit Cash $4,224; debit Factoring Fee Expense $176; credit Accounts Receivable $4,400.
e. Credit Cash $4,224; credit Factoring Fee Expense $176; debit Accounts Receivable $4,400.

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Jervis sells $4,400 of its accounts receivable to Northern Bank in order to obtain necessary cash. N...

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