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Business, 15.04.2020 19:43 Dede6308

On February 1, 2020, Henson 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 Henson factors the receivables on a with recourse basis. The recourse obligation has a fair value of $5,500. The total loss or expense to be reported on the income statement is

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On February 1, 2020, Henson Company factored receivables with a carrying amount of $700,000 to Agee...
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