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Business, 16.08.2020 01:01 hdwoody2002
On February 1, 2020, ABC Company factored receivables with a carrying amount of $700,000 to Agee Company. Agee Company assesses a finance charge of 3% of the receivables and retains 5% of the receivables. Relative to this transaction, you are to determine the amount of loss on sale to be reported in the income statement of Henson Company for February. Assume that Herson factors the receivables on a with recourse basis. The recourse obligation has a fair value of $3,500. The loss to be reported is:
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On February 1, 2020, ABC Company factored receivables with a carrying amount of $700,000 to Agee Com...
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