4) Accounts receivable valued at $40,000 are sold for $38,000. How is the difference of...
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4) Accounts receivable valued at $40,000 are sold for $38,000. How is the difference of $2,000 treated in the entry to record the sale? A. As a debit to Interest Expense B. As a debit to Factoring Fee Expense C. As a credit to Interest Earned D. As a credit to Bad Debts ExpenseE. As a debit to Allowance for Doubtful Accounts
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