Question: Trell Corporation transferred $ 6 8 , 0 0 0 of accounts receivable to a local bank. The transfer was made without recourse. The local

Trell Corporation transferred $68,000 of accounts receivable to a local bank. The transfer was made without recourse. The local bank remits 80% of the factored amount to Trell and retains the remaining 20%. When the bank collects the receivables, it will remit to Trell the retained amount less a fee equal to 3% of the total amount factored. Trell estimates a fair value of its 20% interest in the receivables of $17,000(not including the 3% fee). Trell will show an amount receivable from factor of:
Multiple Choice
$13,600.
$11,560.
$17,000.
$14,960.

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