On October 16, 20X8, RetailZ sold $250,000 of accounts receivable to a factoring company on a recourse basis (i.e., with recourse). The factor offered an 80% cash advance and a 3% fee of the total A/R factored to be paid upfront. Additionally, RetailZ was required to pay any amount that was not collected due to bad debts to the factor on November 15, 20X8. RetailZs estimates bad debts to be 4% of the total factored amount based on historical data. How much loss would the company recognize due to this factoring transaction?