USA Factored Invoices

[tsabath]

Where is the proper place on the Balance Sheet to show the balance of factored invoices.
Contra-Receivable or Short Term Liability?

 

[kirby]

If the receivables were sold then you remove them from accounts receivable, not just a contra asset. But if the transaction is in substance a borrowing then you show the credit as a liability. Its a borrowing if the "seller" still retains substantial control of the factored invoices.