In a sales of receivables with recourse, the cash received by the seller exceeds the amount of receivables sold. True or False
2. $220K or receivables are sold recourse. Fee is 3%. Retained portion is 8% with an estimated value of $15K. Loss to be recognized is:
a. 24.2K
b. 17.6K
c. 9.2K
d. 6.6K
3. $220K of receivables are sold with recourse. Fee is 3%. Retained portion is 8% with an fair value of $15K. Estimated recourse liability is $7K. Loss to be recognized is:
a. 13.6K
b. 16.2K
c. 24.6K
d. 31.2K