A factor has agreed to purchase selected accounts receivable from Epic Company. The factor charged...
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Accounting
A factor has agreed to purchase selected accounts receivable from Epic Company. The factor charged 5% commission and 20% holdback. The following accounts are sold on july 26:
| Invoice Date | Customer | Amount |
| July 23 | A | 300,000 |
| July 25 | B | 500,000 |
| July 24 | C | 200,000 |
On july 28, Customer B was granted a credit of 50,000 for returned merchandise. Final settlement is made with the factor on August 31.
Required:
Prepare journal entries to record the transactions on the book of Epic Company.
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