Respuesta :
Answer:
$6,000
Explanation:
Receivables may be factored to ease the liquidity pressures of an entity. Factoring comes at a cost. As such, when receivables are factored, the entries required are
Debit Cash account
Dr Interest expense (factoring charge)
Credit Accounts receivables
As such, the amount of loss on sale of receivables would Marquess record in June is equivalent to the factoring charge
= 3% * $200,000
= $6,000
Answer:
The loss recorded on the factoring arrangement is $6,000
Explanation:
The loss recorded by Marquess Company on the sale of receivables of $200,000 is the fee of 3% paid since the factor company does not have any recourse to Marquess Company.
A case of recourse who have meant that the factor company can transfer any debt uncollected thereafter to Marquess Company,which does not arise in this case.
Loss on receivables=Amount factored*factoring fee of 3%
=$200,000*3%=$6,000
