Health Provider (the \"company"} offers healthcarerelated services. To reduce administrative obligations and to allow for additional nancing options for its patients, the company enters into a health services nancing agreement [the \"agreement"} with an unrelated third-party nancial institution {the \"bank"). Under the agreement, the company=s patients have the option of requesting that the company transfer its receivables to the bank. Once such a request is made, the following would occur: I The company would transfer the patient's receivables to the banlc. I The bank would pay the company the balance of the receivables in cash. I Because the bank would now hold the receivables om the patient, the patient and bank would enter into a lowinterest loan agreement to stipulate the repayment terms- The agreement between the company and the bank contains the following additional provisions: I Repurchase obligation: the company is required to repurchase the transferred receivables from the bank upon the occurrence of any of the following: c: There are accounts for which any payment obligation is fill or more days past due. c: There are accounts for which the customer disputes liability for any portion of the account. :1: The agreement is terminated. The company is also permitted to repurchase transferred receivables upon notifying the bank that it desires to do so. I Termination payment obligation: upon the termination of the agreement, the company is required to repurchase all transferred receivables held by the bank, unless otherwise agreed to in writing. Either party may terminate the agreement as long as 313 days= notice is given. I Although it has not yet happened, company management believes that it will receive a \"true sale\" opinion om its legal counsel regarding the transferred receivables. I The agreements do not prohibit the banlc om transferring the receivables to another party either as collateral for a borrowing or in an outright sale. Required: 1. Under U.S- GAAP, what EASE Codication subtopic applies to the transfer of receivables between the company and the bank? 2. Should the transfer of the patient receivables om the company to the bank be accounted for as a sale by the company? Why or why not? 3. How should the company account for the transferred receivables