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Question - Zee Company sold accounts receivable without recourse for P5,300,000. The entity received P5,000,000 cash immediately from the factor. The remaining P300,000 will be received once the factor verifies that none of the accounts receivable is in dispute. The accounts receivable had a face amount of P6,000,000. The entity had previously established an allowance for bad debts of P250,000 in connection with these accounts.
Required - Prepare journal entry to record the factoring of accounts receivable.
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