Multiple Choice
Danzig Inc.factors $2,000,000 of its accounts receivables without recourse for a finance charge of 5%.The finance company retains an amount equal to 10% of the accounts receivable for possible adjustments.What would be recorded by Danzig as a gain (loss) on the transfer of receivables?
A) gain of $100,000
B) loss of $100,000
C) loss of $200,000
D) loss of $300,000
Correct Answer:
Verified
Correct Answer:
Verified
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