Accounts receivable to the prudential bank


Mountain High Ice Cream Company transferred $60,000 of accounts receivable to the Prudential Bank. The transfer was made without recourse. Prudential remits 90% of the factored amount to Mountain High and retains10%. When the bank collects the receivables, it will remit to Mountain High the retained amount less a 2% fee (2% of the total factored amount).

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Accounting Basics: Accounts receivable to the prudential bank
Reference No:- TGS054469

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