Question
As collateral for a $2,000,000 6% loan with a bank, Lyn Company assigned $4,000,000 of accounts receivable. The entity also paid a finance fee of
As collateral for a $2,000,000 6% loan with a bank, Lyn Company assigned $4,000,000 of accounts receivable. The entity also paid a finance fee of 5% on the transaction upfront.
What amount should be recorded as a gain or loss on the transfer of accounts receivable?
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Financial And Managerial Accounting Information For Decisions
Authors: John Wild, Ken Shaw, Barbara Chiappetta
7th Edition
1259726703, 9781259726705
