3-4

Before year-end adjusting entries, Bass Company's account balances at December 31, 2007, for accounts receivable and the related allowance for uncollectible accounts were $600,000 and $45,000, respectively. An aging of accounts receivable indicated that $62, 500 of the December 31 receivables are expected to be uncollectible. The net realizable value of accounts receivable after adjustment is $492, 500. $555,000. $537, 500. $582, 500. Of the following conditions, which is the only one that is not required if the transfer of receivables with recourse is to be accounted for as a sale? The transferee cannot require the transferor to repurchase the receivables. The transferor is obligated to make a genuine effort to identify those receivables that are uncollectible. The transferor's obligation under the recourse provisions can be reasonably estimated. The transferor surrenders control of the future economic benefits of the receivables