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Mortonson Corporation factored, with recourse, $300,000 of accounts receivable with Huskie Financing. The finance charge is 3%, and 5% was retained to cover sales discounts, sales returns, and sales allowances. Mortonson estimates the recourse obligation at $7,200. What amount should Mortonson report as a loss on sale of receivables?

A. $31,200

B. $16,200

C. $9,000

D. $0

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9447994

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