Question
Sun Inc. factors 2,000,000 of its accounts receivables with guarantee (recourse) for a finance charge of 3%. The finance company retains an amount equal
Sun Inc. factors 2,000,000 of its accounts receivables with guarantee (recourse) for a finance charge of 3%. The finance company retains an amount equal to 10% of the accounts receivable for possible adjustments. What would be recorded as a gain (loss) on the transfer of receivables? O A. Loss of 60,000. O B. Loss of 260,000. OC. Gain of 60,000. ODEO.
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Intermediate Accounting
Authors: Earl K. Stice, James D. Stice
18th edition
538479736, 978-1111534783, 1111534780, 978-0538479738
