Company A transfer $700,000 in accounts receivables to Finance Company without recourse for a 5% fee. Finance Company will immediately remit 80% of the factored receivables to Company A and retain 20%. When Finance Company collects the remaining receivables, it remits the amount, less the fee, to Company A. Company A estimates that the fair value of the retained portion of the receivables is $11,500 (ignore the factoring fee). What is the amount of loss on sales of receivables and the amount of receivable from factors to be reported, respectively, for Company A?

A) 35,000 and 80,000

B) 60,000 and 80,000

C) 35,000 and 115,000

D) 60,000 and 115.000

Answer rating: 100% (QA)

Answer C 35000 and 115000 Calculation The accounts receivables tr... View the full answer