On February 1, 2025, Henson Company factored receivables with a carrying amount of $700,000 to Agee Company. Agee Company assesses a finance charge of 3% of the receivables and retains 5% of the receivables. Assume that Henson factors the receivables on a with recourse basis and that the recourse obligation has a fair value of $3,500. The loss to be recorded on this transaction is a. $21,000. b. $24,500. c. $35,000. d. $59,500.

On February 1,2025 , Henson Company factored receivables with a carrying amount of $700,000 to Agee Company. Agee Company assesses a finance charge of 3% of the receivables and retains 5% of the receivables. Assume that Henson factors the receivables on a with recourse basis and that the recourse obligation has a fair value of $3,500. The loss to be recorded on this transaction is a. $21,000. b. $24,500. c. $35,000. d. $59,500