BobKamman
Level 15
‎03-31-2024 11:41 PM

I must be missing something here.  Should have taken an accounting course back when I had time. Are they on cash basis?  In that case, wouldn't it just be included in gross receipts?  Or accrual basis? Why?  Is there a reserve for bad debts?  Or maybe these instructions help:

How to Record Invoice Factoring Transactions Without Recourse
  1. Record the amount sold as a credit in accounts receivable.
  2. Record the cash received as a debit in the cash account.
  3. Record the paid factoring fee as a debit loss.
  4. Record the amount the factoring company retained in the debit-due account.