Oriole Companyfactored, with recourse, $507000of accounts receivable withSandhill Co.. The finance charge is4%, and6% was retained to cover sales discounts, sales returns, and sales allowances.Orioleestimates the recourse obligation at $12100. What amount shouldOriolereport as a loss on sale of receivables?

$20280.

$62800.

$32380.

$-0-.

2Swifty Corporation assigns $6500000 of its accounts receivables as collateral for a $2.59 million 7% loan with a bank. Swifty Corporation also pays a finance fee of 2% on the transaction upfront. What would be recorded as a gain (loss) on the transfer of receivables?

$0.

Loss of $130000.

Loss of $455000.

Loss of $585000.

3.Bramble Corp. factors $7200000 of its accounts receivables with recourse for a finance charge of 5%. The finance company retains an amount equal to 9% of the accounts receivable for possible adjustments. Bramble estimates the fair value of the recourse liability at $249000. What would be recorded as a gain (loss) on the transfer of receivables?

Gain of $360000.

Loss of $249000.

Loss of $609000.

Gain of $125700

4.Sheffield Corp. factors $3350000 of its accounts receivables without recourse for a finance charge of 3%. The finance company retains an amount equal to 9% of the accounts receivable for possible adjustments. Sheffield estimates the fair value of the recourse liability at $290000. What would be the debit to Cash in the journal entry to record this transaction?

$2658000.

$3350000.

$3249500.

$2948000.