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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Derecognition of financial asset
A company sells 100,000 dollars of its receivables to a factor and receives 80 percent immediately. The factor charges a fee of $8,000 for the service. The debts are factored without recourse and a balancing payment of $12,000 will be paid by the factor 30 days after the receivables are factored.
What would be the double entries for it please. thanks
debit cash (eventually) $92,000
debit finance charges $ 8,000
Credit receivables $100,000
