On february 1 2012 henson company factored receivables with, Ask an Expert

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On February 1, 2012, Henson Company factored receivables with a carrying amount of $500,000 to Agee Company. Agee Company assesses a finance charge of 3% of the receivables and retains 5% of the receivables. Relative to this transaction, you are to determine the amount of loss on sale to be reported in the income statement of Henson Company for February. Assume that Henson factors the receivables on a without recourse basis. The loss to be reported is:

$0.
$15,000.
$25,000.
$40,000.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91733150

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