Ming Company Factors Without Recourse $6,000,000 of Its Accounts Receivable

Multiple Choice

Ming Company factors without recourse $6,000,000 of its accounts receivable for a finance charge of 6%. The finance company retains an amount equal to 8% of the accounts receivable for possible adjustments. What amount of cash would Ming receive as a result of this initial transaction?

A) $5,640,000
B) $5,520,000
C) $5,160,000
D) $6,000,000