1. In a sales of receivables with recourse, the cash received by the seller exceeds the amount of receivables sold. True or False

2. $220K or receivables are sold recourse. Fee is 3%. Retained portion is 8% with an estimated value of $15K. Loss to be recognized is:

a. 24.2K

b. 17.6K

c. 9.2K

d. 6.6K

3. $220K of receivables are sold with recourse. Fee is 3%. Retained portion is 8% with an fair value of $15K. Estimated recourse liability is $7K. Loss to be recognized is:

a. 13.6K

b. 16.2K

c. 24.6K

d. 31.2K