Assuming a 360-day year what amount of cash rounded to the


Question - A firm that often factors it's AR has an agreement with its finance company that requires the firm to maintain a 6% reserve and charges 1% commission on the amount of receivables. The net proceeds would be further reduced at an annual interstate charged of 10% on the money advanced. Assuming a 360-day year, what amount of cash (Rounded to the nearest dollar) will the firm receive from the finance company at the time a 100,000 account that is due in 90 days is turned over to the finance company?

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Accounting Basics: Assuming a 360-day year what amount of cash rounded to the
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