Sun Incfactors $2,000,000 of Its Accounts Receivables with Guarantee (Recourse) for for a Finance
Sun Inc.factors $2,000,000 of its accounts receivables with guarantee (recourse) for a finance charge of 3%.The finance company retains an amount equal to 10% of the accounts receivable for possible adjustments.What would be recorded as a gain (loss) on the transfer of receivables?
A) Gain of $60,000.
B) Loss of $60,000.
C) Loss of $260,000.
D) $0.
Correct Answer:
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