Question $8$ of $10$

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The controller for Swifty Corporation has reached an agreement with Blue Spruce Financing Ltd$.$ to sell a large portion of Swifty's

past$-$due accounts receivable. Swifty agrees to sell $$1,980,000$ of accounts receivable to Blue Spruce without recourse. Swifty's

controller estimates that the fair value of uncollectible accounts is $$180,000.$ Blue Spruce will charge Swifty $7\%$ of the total

receivables balance as a financing fee, and will withhold an initial amount of $8\%.$ The transaction is treated as a sale.

$($a$)$

Your answer is partially correct.

Calculate the net proceeds and the gain or loss on the disposal of receivables to Blue Spruce Financing Ltd$.$

Net proceeds

on disposal of receivables

$

$