Zipline inc factored with recourse 175000 of accounts


Question: Zipline Inc. factored, with recourse, $175,000 of accounts receivable with Lewis Financing. The finance charge is 3.5%, and 5% was retained to cover sales discounts, sales returns, and sales allowances. Zipline estimates the recourse obligation at $2,200. What amount should Zipline report as a loss on sale of receivables? Please show work so I can understand it, Thanks!

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Accounting Basics: Zipline inc factored with recourse 175000 of accounts
Reference No:- TGS02559096

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