ervis sells $75,000 of its accounts receivable to Northern Bank in order to obtain necessary cash. Northern Bank charges a 5% factoring fee. What entry should Jervis make to record the transaction?

Debit Cash account      $71,250

Debit Factoring charge   $3,750

Credit Accounts receivable  $75,000

Explanation:

Factoring accounts receivable involves the sale of the account receivable to another party such that the debt is now payable to that party. This is usually done to ease liquidity and at a charge.

When receivables are factored,

Debit Cash account

Debit Factoring charge

Credit Accounts receivable

Charge on factoring =  5/100 × $75,000

= $3,750

Amount to be received = $75,000 - $3,750

= $71,250

 The correct option is

(A) where c is the number of dimes.

Step-by-step explanation:  Given that Alice has a total of 12 dimes and nickels and she has 2 more nickels than dimes.

We are to select the correct equation that represents the given problem situation.

Let c represents the number of dimes. Then, the number of nickels will be (c + 2).

Since there are total 12 coins, so the required equation is given by

Thus, the required equation is

where c is the number of dimes.

Option (A) is CORRECT.