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Company X factors $320,000 of its receivables on a with recourse basis. The bank assesses a charge of 2% of receivables and retains 2.5% of
Company X factors $320,000 of its receivables on a with recourse basis. The bank assesses a charge of 2% of receivables and retains 2.5% of receivables. The company received $298,000 in cash and recorded a loss on sale worth $15,000. What is the recourse liability related to this transaction?
$1,000
$7,600
$7,400
$8,000
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