Kaye Company factored with recourse P2,000,000 of accounts receivable with a bank. The finance charge is 5%
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Question:
The transaction met the condition to be considered as sale but subject to recourse for nonpayment. The factor estimated the fair value of the recourse obligation as P50,000?What is the total amount that should be recognized initially as loss on factoring?
Related Book For
Intermediate Accounting
ISBN: 978-1118147290
15th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield
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