Floppy corp factored 600000 of accounts receivable to


Floppy Corp. factored $600,000 of accounts receivable to Floozy Corp. on October 1, 2015. Control was surrendered by Floppy. Floozy accepted the receivables subject to recourse for non payment. Floozy assessed a fee of 3% and retains a holdback equal to 2% of the accounts receivable. In addition, Floozy charged 15% interest computed on a weighted-average time to maturity of the receivables of fifty-four days. The fair value of the recourse obligation is $9,000. Floppy will record: a. cash of b. a loss of

Request for Solution File

Ask an Expert for Answer!!
Financial Accounting: Floppy corp factored 600000 of accounts receivable to
Reference No:- TGS01585488

Expected delivery within 24 Hours