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ABC Corp factors $655,379 of accounts receivable with a financing company on a 'with recourse' basis. The financing company will collect the receivables. The receivable
ABC Corp factors $655,379 of accounts receivable with a financing company on a 'with recourse' basis. The financing company will collect the receivables. The receivable records are transferred to the financing company, which assesses a finance charge of 2.03% of the amount of accounts receivable and also reserves an amount equal to 3.89% of accounts receivable to cover probable adjustments. Financial statements are prepared under ASPE. Assuming that the recourse obligation has a fair value of $6,671, what is the loss on disposal of the receivables? O a. $20,475 O b. $19,975 . $19,476 O d. $20,974 O e. $18,976
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