23. Trell Corporation transferred $62,000 of accounts receivable to a local bank. The transfer was made without recourse. The local bank remits 80% of the factored amount to Trell and retains the remaining 20%. When the bank collects the receivables, it will remit to Trell the retained amount less a fee equal to 3% of the total amount factored. Trell estimates a fair value of its 20% interest in the receivables of $14,000 (not including the 3% fee). Trell will show an amount receivable from factor of:

Multiple Choice

• $12,400.

• $10,540.

• $14,000.

• $12,140.

24.

Excerpts from Huckabee Company's December 31, 2021 and 2020, financial statements are presented below:

	2021				2020
Accounts receivable	$	99,000			$	91,000
Merchandise inventory		77,000				91,000
Net sales		419,000				391,000
Cost of goods sold		259,000				239,000

Huckabee's 2021 receivables turnover (rounded to 2 decimal places) is:

Multiple Choice

• 4.23.

• 2.73.

• 3.08.

• 4.41.

25. Brewer Inc. is owed $217,000 by Carol Co. under a 15% note with two years remaining to maturity. Due to financial difficulties Carol Co. did not pay the prior year's interest. Brewer agrees to settle the receivable (and accrued interest) in exchange for a cash payment of $167,000. The journal entry that Brewer would make to record this transaction would include a loss on troubled debt restructuring as bad debt expense in the amount of:

Multiple Choice

• $0.

• $32,550.

• $50,000.

• $82,550.