Question
Danzig Inc. factors $10,000,000 of its accounts receivables without recourse for a finance charge of 6%.The finance company retains an amount equal to 10% of
Danzig Inc. factors $10,000,000 of its accounts receivables without recourse for a finance charge of
6%.The finance company retains an amount equal to 10% of the accounts receivable for possible adjustments. What would be recorded by Danzig as a gain (loss) on the transfer of receivables?
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Intermediate Accounting principles and analysis
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso
2nd Edition
471737933, 978-0471737933
