Answer
Wood Corp
Cash .................................................................................... 138,000
Due from Factor..................................................................... 9,000*
Loss on Sale of Receivables.................................................. 3,000**
………………Accounts Receivable........................................................... 150,000
Engram
Accounts Receivable............................................................ 150,000
…………………Due to CRC.............................................................................. 9,000
………………….Financing Revenue..................................................................3,000
………………….Cash....................................................................................... 138,000
Work Step by Step
6% X 150,000 = 9,000*
2% X 150,000 = 3,000**
