Question
On November 6, 2020, ABC Company transferred (sold) to a bank, with recourse, $200,000 of its accounts receivable. The bank charges a 4% finance charge
On November 6, 2020, ABC Company transferred (sold) to a bank, with recourse, $200,000 of its accounts receivable. The bank charges a 4% finance charge on transferred accounts and retains 10% of the accounts receivable balance for possible adjustments. Assume that the liability obligation has a fair value of $2,000. Record the sale of accounts receivable to the Bank on November 6, 2020.
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Principles Of Financial Accounting
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
21st Edition
0077525264, 978-0077525262
