Hello, I need help to solve step by step. I know the answer on the below, so please help me to understand it. Thank you! Testbank Multiple Choice Question 121 Coronado Industries factors $7000000 of its accounts receivables with recourse for a finance charge of 2%. The finance company retains an amount equal to 10% of the accounts receivable for possible adjustments. Coronado estimates the fair value of the recourse liability at $207000. What would be recorded as a gain (loss) on the transfer of receivables?

correct answer: Loss of $347000