Determine gross amount of factored accounts receivable


Response to the following problem:

On December 1, Newton Enterprises sells $100,000 of accounts receivable to a factor, receives 85% of the value of the factored accounts, and is charged a 12% commission on the gross amount of the factored accounts receivable. Prepare Newton Enterprises' journal entry.

Support your answer using a minimum of two professional or academic sources.

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Financial Accounting: Determine gross amount of factored accounts receivable
Reference No:- TGS02101091

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