FSA - A/R with Recourse

How would you adjust the financial statements for the following: The footnotes company XYZ indicate that it sold 600 of receivables with recourse to a subsidiary.

if the receivables are still outstanding, add them back in to A/R and add same amt to debt. (form of borrowing)

Correct … Why would you add it to debt and not equity (i.e. other comprehensive income)?

i guess because you will pay that amount to SPE when it is realized. So you will get that money in future but you also pay that money to SPE

Don’t forget to subtract the amount from Revenue in IS as well.

eltia Wrote: ------------------------------------------------------- > Don’t forget to subtract the amount from Revenue > in IS as well. Correct.