Sun Inc. factors $3,800,000 of its accounts receivables without recourse for a finance charge of 6%. The
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Sun Inc. factors $3,800,000 of its accounts receivables without recourse for a finance charge of 6%. The finance company retains an amount equal to 10% of the accounts receivable for possible adjustments. Sun estimates the fair value of the recourse liability at $135,000. What would be recorded as a gain (loss) on the transfer of receivables?
Related Book For
Financial Accounting an introduction to concepts, methods and uses
ISBN: 978-0324789003
13th Edition
Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis
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