On October 1 2016 Beane Company sells (factors) $600000 of receivables to Milago Factors Inc. Milago assesses a service charge of 4% of the amount of receivables sold. The journal entry to record the sale by Beane will include
A) a debit of $600000 to Accounts Receivable.
B) a credit of $624000 to Cash.
C) a debit of $624000 to Cash.
D) a debit of $24000 to Service Charge Expense.
Correct Answer:
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