In a scenario receipts are factored receipt class that requires confirmation, remittance, and
clearance. Select the valid accounting entry that would be generated when receipts are cleared.
A.
The Cash and Bank charges accounts are debited and the Short term debt account is credited
B.
The Cash and Bank charges accounts are debited and the Factoring account is credited
C.
The Short term debt account is debited and the Factoring account is credited.
D.
The Factoring account is debited and the Short term debt account is credited.
Explanation:
Note:
The receipt class you assign to each of your receipt methods determines the processing steps that
Receivables requires for receipts that you create using this receipt method. These steps include
whether to require confirmation, remittance, and bank clearance for receipts that you create with a
specific receipt class.