Question
Maxwell Corporation factored, with guarantee (recourse), $100,000 of accounts receivable with Huskie Financing. The finance charge is 3%, and 5% was retained to cover sales
Maxwell Corporation factored, with guarantee (recourse), $100,000 of accounts receivable with Huskie Financing. The finance charge is 3%, and 5% was retained to cover sales discounts, sales returns, and sales allowances. What amount of cash would Maxwell receive on the sale of receivables?
Select one:
a. $97,000
b. $95,000
c. $92,000
d. $100,000
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Intermediate Accounting IFRS
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
3rd edition
1119372933, 978-1119372936
