Multiple Choice
Gant Company factored its receivables with recourse to Rowlin Bank.Gant received cash as a result of this transaction.This transaction is best described as a ________.
A) loan from Rowlin collateralized by Gant's accounts receivable
B) loan from Rowlin to be repaid by the proceeds from Gant's accounts receivable
C) sale of Gant's receivables to Rowlin with the risk of uncollectible accounts retained by Gant
D) sale of Gant's receivables to Rowlin with the risk of uncollectible accounts transferred to Rowlin
Correct Answer:
Verified
Correct Answer:
Verified
Q10: On June 1,Homart Wholesalers,Inc.sells 2,000 cases of
Q11: Which method of estimating bad debt expense
Q12: Which of the following statements is true?<br>A)Companies
Q13: Companies that use the aging-of-receivables method must
Q18: On January 1,2016,Willett Company's account balances for
Q35: What is a non-interest-bearing note? How does
Q82: What is a bank overdraft?<br>A) reclassification of
Q88: The Sales Discounts Forfeited account is classified
Q130: Accounting standards require separate disclosure for cash
Q132: Which of the following is considered to