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Ming Company Assigns $2,000,000 of Its Accounts Receivables for a Finance

Question 1

Multiple Choice

Ming Company assigns $2,000,000 of its accounts receivables for a finance charge of 4%.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) $1,920,000
B) $1,840,000
C) $1,760,000
D) $1,540,000

Correct Answer:

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