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Question 10 1 pts Desert Company reports the following normal account balances at December 31st: Accounts Receivable $250,000 Allowance for Doubtful Accounts $80,000 Sales Revenue
Question 10 1 pts Desert Company reports the following normal account balances at December 31st: Accounts Receivable $250,000 Allowance for Doubtful Accounts $80,000 Sales Revenue $125,000 Desert decides on December 31st to accelerate the receipt of cash on their A/R by engaging in a secured borrowing transaction with Bisbee Bank. They assign $45,000 of their receivables to Bisbee in the transaction. If Desert reports its A/R at NRV (net of ADA) on its balance sheet, the balance Desert will report for A/R on its December 31st balance sheet after the assigning transaction is? O It depends on the terms of the assigning transaction Greater than it was before the assigning transaction O Less than it was before the assigning transaction Exactly the same as it was before the assigning transaction
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