Sun Inc. factors $6,000,000 of its accounts receivables without recourse for a finance charge of 3%. The finance company retains an amount equal to 10% of the accounts receivable for possible adjustments. If it were a transaction with recourse, Sun would have estimated the fair value of the recourse liability at $300,000. What would be recorded as a gain (loss) on the transfer of receivables
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Sun Inc. factors $6,000,000 of its accounts receivables without recourse for a finance charge of 3%. The finance company retains an amount ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Which type of break can you insert if you want to force text to begin on the next page?
Answers (1)
On January 1, Jamaica Company purchased equipment for $18,000. The estimated salvage value is $2,000 and the estimated useful life is 5 years.
Answers (1)
Routine technologies are characterized by little task variety and the use of objective, computational procedures, whereas engineering technologies tend to be complex because there is substantial variety in the tasks performed. True / False.
Answers (1)
Why do banks retain a fractional reserve? O A. To invest in the stock market create a balance sheet O c. To loan money to the government O D. To satisfy demands for withdrawals SUE
Answers (1)
Lexington Company sells product 1976NLC for $20 per unit. The cost of one unit of 1976NLC is $18, and the replacement cost is $17. The estimated cost to dispose of a unit is $4, and the normal profit is 40% of selling price.
Answers (1)
New Questions in Business
A business selling a single service or product needs to indicate as such on the Item List or in the Easy Step Interview.
Answers (1)
What is one purpose of writing a business plan before entering the market? 1/to prove that the new company will be successful 2/to show that the enterprise is realistically based 3/to have a useful tool when applying for funding 4/to differentiate
Answers (1)
When is it appropriate to use an absolute reference? a. when the information in a formula always relates to the same cell b. when the information in a formula changes to relate to the cells next to the specified location c.
Answers (1)
A company would like to produce 5000 products per week for 30 weeks. The Direct Material Cost for the raw materials used in the product is $1.50 per product.
Answers (1)
During Zach's first visit of the year he incurred a $500 bill. Who pays this bill
Answers (1)