What journal entry format is appropriate if sales returns and allowances occur on factored accounts?

A. Sales Returns and Allowances     XX      Receivable from Factor                          XX
B. Receivable from Factor               XX      Factoring Expense                                 XX
C. Sales Returns and Allowances    XX      Factoring Expense                                 XX
D. Factoring Expense                      XX       Sales Returns and Allowances              XX


Answer: A

Business

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