Trevino Company has decided to factor its accounts receivable in order to get the immediate receipt of cash. The journal entry to record the factoring of the receivables would include:
A) a debit to Accounts Receivable and a credit to Cash.
B) a debit to Cash and a credit to Accounts Receivable.
C) a debit to Cash, debit to Financing Expense and credit to Accounts Receivable.
D) a debit to Cash, credit to Interest Revenue and credit to Accounts Receivable.
Correct Answer:
Verified
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