USA Factored Invoices

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

kirby

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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.
 
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