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A company factors $ 3 0 0 , 0 0 0 of accounts receivable on a with recourse basis. The fair value of the recourse

A company factors $300,000 of accounts receivable on a with recourse basis. The fair value
of the recourse provision is $11,000. The factor assesses 4% of the receivables as a finance charge
and the company receives $267,000 cash in the initial transaction. What percentage of the receivables
did the factor retain to cover possible future sales discounts, returns, and allowances?
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