Explore BrainMass

Explore BrainMass

    Loss on sale of receivables

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Joe Novak Corporation factored, with recourse $100,000 of accounts receivable with Huskie financing. The finance charge is 3% and 5% was retained to cover sales discounts, sales returns, and sales allowances. Joe Novak estimates the recourse obligation at $2400. What amount should Joe Novak report as a loss on sale of receivables?

    © BrainMass Inc. brainmass.com October 9, 2019, 9:54 pm ad1c9bdddf

    Solution Summary

    The solution explains how to calculate the loss on sale of receivables due to factoring.