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Business, 04.04.2020 12:55 djcloverman1905

Dowbak Inc. factors with recourse $450,000 of accounts receivable with a finance company. The factor charges a 5% finance fee and retains an amount equal to 15% of the accounts receivable for sales adjustments. Dowbak estimates its recourse liability for bad debts to be $6,000. What is the amount of the loss on sale of receivables that Dowbak would recognize upon sale of its receivables to the finance company?

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Dowbak Inc. factors with recourse $450,000 of accounts receivable with a finance company. The factor...
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