Which of the following accounts is debited when a company factors its accounts receivable?

a. Loss on Sale of Accounts Receivable

b. Interest Expense

c. Accounts Receivable

d. Service Charge Expense

The answer is option c Accounts receivable.

Explanation:

The Accounts receivable is the following accounts that is debited when a company factors its account receivable.

Based on the allowance method bad debts expense is debited when the account is uncollectable and must be written.

The net realizable value of receivables is the same both and after an account has been written off. The receivables are reported on the balance sheet as the cash amount produced by the customer.

When the balance of accounts receivable denotes the amount gained by customers, the amount reported on the balance sheet is shown at their cash realizable value.