Solved: What are the cost for each option factor 20000 of current, Accounting Basics

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What are the cost for each option factor 20000 of current

Question - What are the cost for each option?

a. Factor $20,000 of "current" receivables (0-30 days old) on a nonrecourse basis at a flat fee of 11% of the value of the receivables sold.

b. Factor $20,000 of "current" receivables on a recourse basis at a flat fee of 6% of the value of the receivables sold.

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Accounting Basics: What are the cost for each option factor 20000 of current

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