On May 1, Dexter, Inc. factored $1,600,000 of accounts receivable with Quick Finance on a without recourse basis. Under the arrangement, Dexter was to handle disputes concerning service, and Quick Finance was to make the collections, handle the sales discounts, and absorb the credit losses. Quick Finance assessed a finance charge of 6% of the total accounts receivable factored and retained an amount equal to 2% of the total receivables to cover sales discounts.

A) Explain the main advantage and disadvantage of selling receivables without recourse.

B) Explain the main advantage and disadvantage of selling receivables with recourse.

Can you please help me with a detailed explanation? is for a test and the instructor would like to see it explained detailed.