• On January 31^st, 2021, X Co. transfers $400,000 in receivables to Cater Finance with recourse. Cater charges a fee of 4% of the Account Receivable. X estimates a $3,000 recourse liability. Cater will immediately remit 90% of the factored receivables to X, and retain 10%. When Cater collects the remaining receivables, it remits the amount, less the fee, to X. X estimates that the fair value of the final 10% of the receivables is $25,000. X will record a Loss on Sale of Receivables of