Frederick Company borrows $63,000 from First City Bank and pledges its receivables as security. Which of the following is true regarding this transaction: Multiple Choice First City Bank is the factor in this transaction. Frederick Company's financial statements must disclose the pledging of receivables. Frederick Company no longer has the risk of bad debts. First City Bank takes ownership of the receivables at the time of the pledge. No journal entry is required for this event.
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Frederick Company borrows $63,000 from First City Bank and pledges its receivables as security. Whic...
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