Financing with Accounts Receivable Each of the following excerpts are taken from the notes to the financial statements of companies providing additional information about their financial assets and their financing policies. For each one, state:

a. Whether the information indicates that borrowing has taken place.

b. Who is responsible for collecting the company’s accounts receivable.

c. What happens if the accounts receivable in question are not paid by the customers.
Company A: The company has borrowed money from the Flush Bank, giving it a security interest in accounts receiyable in general.
Company B: The company has sold with recourse the receivables from two government agencies.
Company C: The company has sold a portion of its accounts receivable for cash, without recourse. During the current year, $231,000 of receivables were sold and, during the previous year, $103,000 of receivables were sold.