What are the correct entries to record Factoring of accounts receivables?

Hi there @Chris Alison ,

Thank you for reaching out to the Community. You can use Sales Receipt to record the 48k and deposit it to Undeposited Funds account. Let me show you how: 

1. Click the + New.
2. Select Sales receipt.
3. Choose the customer name from the Customer drop-down menu.
4. From the deposit to drop-down arrow, tap Undeposited Funds.
5. Fill out the rest of the sales receipt information needed.
6. Press Save and Close. 

For the amount taken monthly, you can record it as well into the Sales receipt. Since there is no A/R on a cash basis. However, I suggest reaching out to your accountant for their second opinion to prevent any discrepancies in your book. 

For future reference, you can read through our help articles. It guides you in how to put payments into the Undeposited Funds account if you need to combine them into a deposit in QuickBooks Online.

• Deposit payments into the Undeposited Funds account in QuickBooks Online 

• Record and make Bank Deposits in QuickBooks Online 

Let me know if you need anything else. We're always happy to help. Have a great day!