Gain-loss on the transfer of receivables, Accounting Basics

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Gain-loss on the transfer of receivables

Sun Inc. factors $3,000,000 of its accounts receivables with recourse for a finance charge of 3%. The finance company retains an amount equal to 10% of the accounts receivable for possible adjustments. Sun estimates the fair value of the recourse liability at $150,000. What would be recorded as a gain (loss) on the transfer of receivables? Loss of $240,000.

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Accounting Basics: Gain-loss on the transfer of receivables

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Accounting Basics: Gain-loss on the transfer of receivables

Reference No:- TGS060929

Have a Question? (oR Write a Review)

Recent Questions Asked Accounting Basics

Q : Accounts receivable during the period

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Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: Gain-loss on the transfer of receivables

Reference No:- TGS060929

Recent Questions Asked Accounting Basics

Q : Accounts receivable during the period

Q : Demand for computers is likely to be elastic or inelastic

Q : Gain-loss on the transfer of receivables

Q : Relationship-elasticity of demand for good-consumer surplus

Q : Gain-loss on the transfer of receivables

Q : What were the equivalent units for conversion costs

Q : What would transformers report as total stockholders equity

Q : How increase in fixed costs affect average total cost curve

Q : What is berk''s basis in this land

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