When should a transfer of receivables be recorded as a sale?

The transferred assets are isolated from the transferor.

The transferor maintains effective control over the transferred assets through an agreement to repurchase or redeem them before their maturity.

The buyer surrenders control of the receivables to the seller.

The transferee cannot pledge or exchange the transferred assets.Why would a company sell receivables to another company?

To comply with customer agreements.

To limit its legal liability.

To improve the quality of its credit$-$granting process.

To accelerate access to amounts collected.