oblem XVII: On February 1, 2020, Norton Company factored accounts receivables with a carrying amount of $500,000 to Koch Bank. Koch Bank assesses a finance charge of 3% of the receivables and reserve 5% of the receivables. A. Assume the Norton factors the receivable on a without recourse basis. What is the loss on sale to be reported in the income statement of Norton Company for February? B. Assume the Norton factors the receivable on a with recourse basis. The recourse obligation has a fair value of $2,500. What conditions must be met for a factoring of receivables with recourse be accounted for as a sale? What is the loss on sale to be reported in the income statement of Norton Company for February assuming that all the conditions above are met? C. Prepare the required journal entry on Norton Company on February 1, 2020 assuming Norton factors the receivable on a with recourse basis. Omit explanation. Date Accounts Title and Explanation Ref. Debit Credit