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    Factoring Accounts Receivable

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    John Maynard
    This document outlines the accounting entries for accounts receivable factoring with and without recourse. For factoring without recourse, entries are made to cash, allowance for doubtful accounts, receivable from factor, and loss on factoring when accounts are factored. Entries are also made for sales returns, cash, and receivable from factor to settle the factor's holdback. For factoring with recourse, the same entries are made along with entries to a recourse obligation account for potential losses and a gain on recourse obligation account when the holdback is settled.

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    Factoring Accounts Receivable

    Uploaded by

    John Maynard
    26 views4 pages
    This document outlines the accounting entries for accounts receivable factoring with and without recourse. For factoring without recourse, entries are made to cash, allowance for doubtful accounts, receivable from factor, and loss on factoring when accounts are factored. Entries are also made for sales returns, cash, and receivable from factor to settle the factor's holdback. For factoring with recourse, the same entries are made along with entries to a recourse obligation account for potential losses and a gain on recourse obligation account when the holdback is settled.

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    This document outlines the accounting entries for accounts receivable factoring with and without recourse. For factoring without recourse, entries are made to cash, allowance for doubtful accounts, receivable from factor, and loss on factoring when accounts are factored. Entries are also made for sales returns, cash, and receivable from factor to settle the factor's holdback. For factoring with recourse, the same entries are made along with entries to a recourse obligation account for potential losses and a gain on recourse obligation account when the holdback is settled.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    26 views4 pages

    Factoring Accounts Receivable

    Uploaded by

    John Maynard
    This document outlines the accounting entries for accounts receivable factoring with and without recourse. For factoring without recourse, entries are made to cash, allowance for doubtful accounts, receivable from factor, and loss on factoring when accounts are factored. Entries are also made for sales returns, cash, and receivable from factor to settle the factor's holdback. For factoring with recourse, the same entries are made along with entries to a recourse obligation account for potential losses and a gain on recourse obligation account when the holdback is settled.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 4

    Factoring - without recourse

    Casual Basis Regular means of financing / Fa

    Date Accounts Debit Credit Date Accounts


    Entries on factored accounts receivable: Entries on factored accounts receivable:
    Cash xx Cash
    Allowance for doubtful accounts xx Allowance for Doubtful Accou
    Receivable from factor xx Receivable from factor
    Loss on Factoring (squeeze) xx Interest Expense
    Accounts Receivable xx Service Charge

    Entries for the settlement of factor's holdback: Entries for the settlement of factor's hold
    Sales returns xx Sales Returns
    Cash (squeeze) xx Cash
    Receivable from factor xx
    means of financing / Factoring as continuing agreeement

    Debit Credit
    factored accounts receivable:
    xx
    Allowance for Doubtful Accounts xx
    Receivable from factor xx
    Interest Expense xx
    Service Charge xx
    Accounts Receivable xx

    r the settlement of factor's holdback:


    Sales Returns xx
    xx
    Receivable from factor xx
    Factoring - with recourse
    Casual Basis Regular means of financing / Fa

    Date Accounts Debit Credit Date Accounts


    Entries on factored accounts receivable: Entries on factored accounts receivable:
    Cash xx Cash
    Allowance for doubtful accounts xx Allowance for Doubtful Accou
    Receivable from factor xx Receivable from factor
    Loss on Factoring (squeeze) xx Interest Expense
    Accounts Receivable xx Service Charge
    Recourse Obligation xx Loss on recourse obligation

    Entries for the settlement of factor's holdback: Entries for the settlement of factor's hold
    Sales returns xx Sales Returns
    Cash (squeeze) xx Cash
    Receivable from factor xx

    Recourse obliation xx Recourse obligation


    Gain on recourse obligation xx
    means of financing / Factoring as continuing agreeement

    Debit Credit
    factored accounts receivable:
    xx
    Allowance for Doubtful Accounts xx
    Receivable from factor xx
    Interest Expense xx
    Service Charge xx
    Loss on recourse obligation xx
    Accounts Receivable xx
    Recourse obligation xx

    r the settlement of factor's holdback:


    Sales Returns xx
    xx
    Receivable from factor xx

    Recourse obligation xx
    Gain on recourse obligation xx

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