The following information relates to Zulu Company's accounts receivable for 2017: Accounts receivable, 1/1/2017.........................$ 750,000 Credit sales

Question:

The following information relates to Zulu Company's accounts receivable for 2017:

Accounts receivable, 1/1/2017.........................$ 750,000

Credit sales for 2017.....................................3,100,000

Accounts written off during 2017........................45,000

Collections from customers during 2017.............2,400,000

Estimated uncollectible accounts at 12/31/2017.........95,000

A factor has recently offered to purchase all of Zulu's outstanding receivables without recourse for 94% of their face amount.

Required:

At what net amount should Zulu report its receivables assuming the company chooses to measure financial assets at fair value?

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...