1. Popper Enterprises factors $700,000of its accounts receivables to Third Bank with recourse for a finance...

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Accounting

1. Popper Enterprises factors $700,000of its accountsreceivables to Third Bank with recourse for a finance charge of4?%. The finance company retains an amount equal to? 7% of theaccounts receivable for possible adjustments. Third Bank willreturn the hold back to Popper when it collects the receivables.In? addition, the fair value of the recourse liability is estimatedat? $20,000. What amount of cash would Popper receive as a resultof this? transaction?
A. $623,000 B. $665,000 C. $680,000 D. $700,000
2. Which ratio indicates the effectiveness of a? company'scredit extension? policy?
A. inventory turnover B. accounts payable turnover C. daysinventory on hand D. days sales outstanding
3. What type of account is Discount on Note? Receivable?
A. asset B. contra?revenue C. revenue D. contra?asset

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All working forms part of the answer Answer 1 Account receivables factored 700000 Recourse Liability 20000 Due from Factor Third Bank 700000 x 7 49000 Loss from Factoring 700000 x 4 20000 recourse liability 48000 See Answer

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