Thresher Corporation sold its accounts receivable outright to Kari Company, a financing company which normally buys accounts receivable of other companies without recourse. The accounts receivable have been

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When accounts receivable are sold outright to a financing company without recourse, this process is known as factoring. Factoring involves a business selling its accounts receivable to a third party (the factor) at a discount, in order to obtain immediate cash.

Thresher Corporation Sold Its Accounts Receivable Outright to Kari Company