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Which of the ff is a method to generate cash from accounts receivable?
C. A and B
D. A,B and Discounting
Discounting is applicable to notes receivable and not to accounts receivable. So it’s C
For me, mas applicable yung Letter B. Kasi yung excess from Receivable from factor, commission,interest eh mag-dedebit ng Cash. Kaya ayun tapos iba pa kung may loss on factoring
C po kasi para sa Notes receivable lang yung discounting saka wala namang interest ang accounts receivable
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