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accounts - entry Entry:

disclosure only Accounts Receivable xx
Sales xx

Loan Payment
Face value of loan xx Accounts Receivable xx
Discounted interest (xx) Service Charge (xx)
Net cash received xx
Net proceed xx

Factor's holdback - based on sales price

Assignment of Accounts Receivable
Finance fee - based on net receivables factored
Entry: Gain or Loss - gain/loss + finance fee
Accounts Receivable -
assigned xx
Accounts Receivable xx Sales Price xx
Finance fee/commission xx
Face value/Total Loan - Net Sales Price xx
liability xx Book value - Accounts
Service charge (xx) receivable (xx)
Net proceeds xx Gain/loss xx

Accounts Receivable - Discounting of Note Receivable

assigned xx Silent - with recourse
Related Liability (xx) meaning the
Equity in assigned endorser/payee/creditor
accounts xx current liability will assume liability if the
part of related debtor will not
liability pay
disclosure
only exclude first day include last
Period - day

Factoring of Accounts Receivable

Principal xx
a. Casual Factoring Interest - until maturity xx
Sales Price xx Maturity value xx
Book value - Accounts receivable (xx)
Gain/loss xx Maturity value xx
Discount rate xx
Discount period xx
b. Factoring as a continuing agreement
Factor's Discount - interest xx
holdback - amount withheld by the factor
Current as a protection against customer Term of note xx
asset returns
Days expired (xx)
and allowances and other
adjustments Remaining term - discount period xx

Gross Amount - receivable xx

Sales discount xx
Commission xx
Factor's holdback xx (xx)
Net cash - factoring xx
Maturity value xx Face value xx
Discount - interest (xx) Allowance for loan impairment
Net proceeds xx (Impairment loss - accrued interest) (xx)
Carrying
Principal xx amount xx
Accrued interest xx
Carrying amount xx

Net proceeds xx
Carrying amount (xx)
Gain/loss on
discounting xx

Contingent Liability
Equal to Face amount / Principal of the note
discounted

With recourse
a. Conditional Sale - contingent liability
Note Receivable discounted - deducted
from total notes receivable
note receivable is not derecognized

b. Secured Borrowing
no gain or loss on discounting
note receivable is not derecognized
Liability for note receivable discounted

Discounting own note

Face value of loan xx
Discounted interest (xx)
Net proceed xx

Without
Recourse
Note receivable is derecognized

Impairment of Loan
Present Value xx
Accrued Interest xx
Carrying Amount xx

Amortization of Allowance
Based on interest income
effective rate