FACTORING ACCOUNTS RECEIVABLE
On February 1, Anderson, Inc., factors $1,200,000 of accounts receivable. The factor charges a 2 percent fee.
2. ACCOUNTING FOR NOTES RECEIVABLE
Tucker Products sold inventory costing $20,000 to Thomas, Inc., in exchange for a fivemonth, $50,000, 12 percent note receivable. Thomas, Inc., paid Tucker the full amount of interest and principal on April 30, 2010.
FACTORING ACCOUNTS RECEIVABLE