14.

15.

16.

(please show the steps when you solve 16)

17.

Which of the following is true when accounts receivable are factored without recourse? O A. The financing cost (interest expense) should be recognized ratably over the collection period of the receivables. O B. The transaction may be accounted for either as a secured borrowing or as a sale, depending upon the substance of the transaction O C. The receivables are used as collateral for a promissory note issued to the factor by the owner of the receivables. O D. The factor assumes the risk of collectibility and absorbs any credit losses in collecting the receivables. Click to select your