If a company sells its accounts receivables to a factor O a. there is a gain on the sale of the receivables. O b, the seller of the A/R pays a fee to the factor. O c. the factor pays a fee to the seller of the A/R. O d. the seller defers recognition of sales revenue until the account is collected by the factor.

If a company sells its accounts receivables to a factor O a. there is a gain on the sale of the receivables. O b, the seller of the A/R pays a fee to the factor. O c. the factor pays a fee to the seller of the A/R. O d. the seller defers recognition of sales revenue until the account is collected by the factor.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 26MC: What is the impact on the accounting equation when an accounts receivable is collected? A. both...

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