How to Account For Factoring
Negotiate an agreement with the factoring company.. Sell and record the receivables.. Record a journal entry when the accounts are collected.
Steps
1
Negotiate an agreement with the factoring company.
Negotiate an agreement with the factoring company.
2
Sell and record the receivables.
Sell and record the receivables.
3
Record a journal entry when the accounts are collected.
Record a journal entry when the accounts are collected.
4
Record a journal entry if a customer defaults.
Record a journal entry if a customer defaults.
5
Negotiate an agreement with the factoring company.
Negotiate an agreement with the factoring company.
6
Sell the receivables, and record the appropriate journal entry.
Sell the receivables, and record the appropriate journal entry.
7
Record the journal entry when the accounts are collected.
Record the journal entry when the accounts are collected.
8
Record a journal entry in case of customer default.
Record a journal entry in case of customer default.
9
Consider the positive aspects of factoring.
Consider the positive aspects of factoring.
10
Consider the negative aspects of factoring.
Consider the negative aspects of factoring.
11
Investigate the online marketplace for factoring.
Investigate the online marketplace for factoring.
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