I keep replying on the post but it would never post.
– I asked : In the Highwood question, since all the receivables have been “sold” to EasyFinance and EasyFinance is collecting money from the receivables,how will the balance of receivables be credited in Highwood?
– You said :
By the entry:
Dr Bank $8.7
Dr Administrative expenses $1.3
Cr Receivables $10
– My reply :
Isn’t this the wrong actual entry made by Highwood which should have been reversed by :
Dr Receivables 10
Cr Adm 1.3
Dr Loan a/c 8.7 ?