Star Co. assigned P4,000,000 of accounts receivable as collateral for a P2,000,000 6% loan with a bank. The entity also paid a finance fee of 5% on the transaction upfront. What amount should be recorded as gain or loss on the transfer of accounts receivable?

Answer rating: 100% (QA)

This scenario involves a factoring transaction with recourse where Star Co us... View the full answer