henyviv factored receivables with a carrying amount of P2M to Darrel Corp on Feb 1, 2021 with a finance charge of 3 pct of the receivables while retaining 5 pct of the receivables. Assuming that the factoring is treated as a sale what amount of loss from the sale should the company report in its 2021 statement of comprehensive income?
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Jhenyviv factored receivables with a carrying amount of P2M to Darrel Corp on Feb 1, 2021 with a finance charge of 3 pct of the receivables while retaining 5 pct of the receivables.
Assuming that the factoring is treated as a sale what amount of loss from the sale should the company report in its 2021 statement of comprehensive income?
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