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  3. dh hardware store factors $100,000 of receivables

DH Hardware Store factors $100,000 of receivables to Friendly Factors Enterprise. Friendly Factors assesses a...

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Accounting

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DH Hardware Store factors $100,000 of receivables to Friendly Factors Enterprise. Friendly Factors assesses a service charge of 2% on the factored receivables. The hardware store's required entry to record the factored receivables results in a $2,000 decrease in assets and a $2,00 increase in stockholders' equity. decrease in assets and stockholders' equity. decrease in liabilities and stockholders' equity. increase in liabilities and a $2,000 decrease in stockholders' equity

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