Ayayai Financial Services has agreed to purchase $$580,000$ of Whispering Winds Corporation$$s outstanding accounts receivable, with recourse. Whispering Winds$$s controller estimates that the fair value of the uncollectible accounts is $$92,800.$ Ayayai will charge Whispering Winds $10\%$ of the total receivables balance as a financing fee, and will withhold an initial amount of $20\%.$

$($a$)$

Your answer is partially correct.

Calculate the net proceeds and the gain or loss on the sale of receivables to Ayayai.

Net proceeds

$enter a dollar amount

$406000$

Incorrect answer

select an option

Loss

Correct answer on disposal of receivables

$enter a dollar amount

$150800$

Correct answer