Accounting for factoring accounts receivable without recourse is generally accounted for by the transferor (original seller of good or service) as a:

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Factoring accounts receivable without recourse is essentially selling the receivables to a third party (the factor) in exchange for cash, with no responsibility for collections or credit risk. Therefore, it is accounted for as a sale on the transferor's books. The transferor recognizes the cash received and removes the accounts receivable from their balance sheet.

Accounting for Factoring Accounts Receivable Without Recourse Is Generally Accounted