In a sale of receivables with recourse, the cash received by the seller exceeds the number of
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Question:
In a sale of receivables with recourse, the cash received by the seller exceeds the number of receivables sold. True or False
$220K or receivables are sold recourse. The fee is 3%. The retained portion is 8% with an estimated value of $15K. Loss to be recognized is:
a. 24.2K
b. 17.6K
c. 9.2K
d. 6.6K
$220K of receivables are sold with recourse. The fee is 3%. The retained portion is 8% with a fair value of $15K. The estimated recourse liability is $7K. Loss to be recognized is:
a. 13.6K
b. 16.2K
c. 24.6K
d. 31.2K
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