If a company usually sells its accounts receivable, it records any factoring commissions as a(n)

A) loss
B) expense
C) receivable
D) liability

Factoring Commissions

Factoring commissions are fees paid to a factor, or financial intermediary, for advancing funds to a business by purchasing its accounts receivable.

Accounts Receivable

Amounts owed to a business by its customers for goods or services delivered or used but not yet paid for.

Loss

The result when a company's expenses exceed its revenues during a specific period of time.