Sunland Company factors $7100000 of its accounts receivables

Sunland Company factors $7100000 of its accounts receivables without recourse for a finance charge of 6%. The finance company retains an amount equal to 10% of the accounts receivable for possible adjustments. Sunland estimates the fair value of the recourse liability at $220000. What would be recorded as a gain (loss) on the transfer of receivables?A.Loss of $1356000.B.Loss of $426000.C.Loss of $220000.D.Gain of $646000.

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