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