A company factored $30,000 of its accounts receivable and was charged a 2% factoring fee. The journal entry to record this transaction would include a debit to Cash of $30,000, a debit to Factoring Fee Expense of $600, and credit to Accounts Receivable of $30,600.

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The cash received should be $29,400 after deducting the $600 factoring fee from the $30,000 accounts receivable. The correct entry would be: Debit Cash $29,400, Debit Factoring Fee Expense $600, and Credit Accounts Receivable $30,000.

A Company Factored $30,000 of Its Accounts Receivable and Was