Question
Bonita Corporation factored, with recourse, $275000 of accounts receivable with Culver Financing. The finance charge is 3%, and 5% was retained to cover sales discounts,
Bonita Corporation factored, with recourse, $275000 of accounts receivable with Culver Financing. The finance charge is 3%, and 5% was retained to cover sales discounts, sales returns, and sales allowances. Bonita estimates the recourse obligation at $6600.
What amount should Bonita report as a loss on the sale of receivables?
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Intermediate Accounting
Authors: kieso, weygandt and warfield.
14th Edition
9780470587232, 470587288, 470587237, 978-0470587287
