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Wilson Co. factors its receivables with a carrying amount of $200,000 to Will-it Work Finance for $190,000 on a with recourse basis. The recourse provision
Wilson Co. factors its receivables with a carrying amount of $200,000 to Will-it Work Finance for $190,000 on a with recourse basis. The recourse provision has a fair value of $2,000.
a) Compute the net proceeds and the gain or loss, if any.
b) Prepare the appropriate journal entry to record this transaction on the books of Wilson. Show your computations
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