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MikeLittle.
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mansoor
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a quick question:
i have a debt of 100 on my books as receivable.
i factor it and get 100 and the terms are such that its a loan.so i will setup the entry as follows:
Dr Debts Factored (or whatever its formally called) 100
Cr Liability 100
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and the balance in Receivables remains in the books as it is. .. correct?now, lets say i get 80 from the factor and its still a loan
Dr Debts Factored 80
Liability 80
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and the balance in Receivables remains in the books as it is. .. correct?thanks
mansoor
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please ignore .. the debit shd be cash!!…
MikeLittle
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And the last 20 debit should be expenses
And you’re never in this world going to get $100 for factoring $100 of debt
And basically the entry is
Dr Cash 80
Dr Finance Costs 20
Cr Loan Account 100OK?
mansoor
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thank u!
MikeLittle
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You’re welcome
mansoor
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