Hale Hardware is planning to factor some of its receivables. The cash received will be used to
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Hale Hardware is planning to factor some of its receivables. The cash received will be used to pay for inventory purchases. The factor has indicated that it will require “recourse” on the sold receivables. Explain to the controller of Hale Hardware what “recourse” is and how the recourse will be reflected in Hale’s financial statements after the sale of the receivables.
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Related Book For
Intermediate Accounting principles and analysis
ISBN: 978-0471737933
2nd Edition
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso
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