Assume ABC sells its receivables to another company for immediate cash on a regular basis.How should the factoring fee be reported in the income statement?
A)Selling expense.
B)Non-operating expense.
C)Sales returns.
D)Not at all.

Question

Quizplus · Accepted Answer

Companies that regularly sell receivables report the cost of factoring on the income statement as a selling expense.

Assume ABC Sells Its Receivables to Another Company for Immediate