Maxwell Corporation factored, with guarantee (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.What amount of cash would Maxwell receive on the sale of receivables?
A) $97,000.
B) $95,000.
C) $92,000.
D) $100,000.
Correct Answer:
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