Trade Receivables

Question 1

Discounting vs. Factoring? Converting what to cash quickly

Answer 1

Discounting is for Notes Receivable // Factoring is for Accounts Receivable

Factoring receivables is the process by which a company converts its receivables to cash by assigning them to a factor, either with or without recourse.
Discounting is the process of converting notes receivable, not accounts receivable, to cash.

Question 3

Cogs= beg inv + purch - end inv

Answer 3

Purch = cogs - beg inv + end inv