Question $3$

FACTORING

Speed Motorcycles sold $$562,000$ of receivables to a factor to increase the company's liquidity. The company chose to

factor these receivables without recourse. In exchange for these receivables, the factor paid Speed $$431,000$ on the date

of transfer. Ultimately, the factor collected $92\%$ these receivables.

What is the amount of interest expense that will be recorded on completion of collection of the factored receivables?