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A company factors $ 5 0 0 , 0 0 0 of accounts receivable on a without recourse basis. The factor retains 1 0 %
A company factors $ of accounts receivable on a without recourse basis. The factor
retains of the receivables to cover possible future sales discounts, returns, and allowances. The
company debits cash for $ when recording this transaction. What percentage of the
receivables does the factor assess as a finance charge?
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