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Business, 07.10.2019 18:30 hanjonez

Logitech corporation transferred $115,000 of accounts receivable to a local bank. the transfer was made without recourse. the local bank remits 85% of the factored amount to logitech and retains the remaining 15%. when the bank collects the receivables, it will remit to logitech the retained amount less a fee equal to 2% of the total amount factored. logitech estimates a fair value of its 15% interest in the receivables of $12,500 (not including the 2% fee). what is the effect of this transaction on the company’s assets, liabilities, and income before income taxes?

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Logitech corporation transferred $115,000 of accounts receivable to a local bank. the transfer was m...
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