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Dornet Co. sold $10,852,000 of its accounts receivable with recourse. The finance charge was 3% and the finance company will retain an amount equal to
Dornet Co. sold $10,852,000 of its accounts receivable with recourse. The finance charge was 3% and the finance company will retain an amount equal to 8% of the receivables for possible returns and discounts. If Dornet Co. assumes that the finance company might have trouble collecting 6% of the receivables, how much of a gain (or loss) will they record on the sale?
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