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Factoring AR without Recourse
Selling receivables where the buyer (factor) assumes all risk of the customer not paying.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash | Asset (+) | 9,000.00 | - |
| Loss on Sale of Receivables | Expense (+) | 1,000.00 | - |
| Accounts Receivable | Asset (-) | - | 10,000.00 |
💡 Accountant's Note
Because it is 'Without Recourse,' the company has no further liability. It is treated as a final sale of an asset rather than a loan.
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QA
Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.