2 thoughts on “How To Account Product Financing Arrangement?”

  1. Nice definition Mr. Putra. I am a CMA student and was really confused about this term while reading in study materials.

    Congrats and Keep it up.

    Cheers

  2. I understand what a seller (sponsor) should record in its journal entries, but what about the purchaser?
    Their inventories do not decrease because there is no real purchase, but they get a loan from a bank to give it to the sponsor, how does this company should account for it? As a liability too? And how many other entries should the purchaser record? Thank you!!

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