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  3. mini corporation factored, with recourse, $600,000

Mini Corporation factored, with recourse, $600,000 of accounts receivable with Huskie Financing. The agreement met...

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Accounting

Mini Corporation factored, with recourse, $600,000 of accounts receivable with Huskie Financing. The agreement met all three conditions to be considered an
outright sale. Huskie advanced 92% of the amount factored and retained the remainder to cover a 3% finance fee (to be remitted at the end of the agreement) and
any sales returns/allowances/discounts. The recourse obligation is estimated to be 2.4% of accounts factored. Mini estimates the fair value of the final 8% of the
receivables factored to be $43,000.
Determine the effect of this transaction on Mini's financial position: (Use I for increased; D for decreased; or NE for No Effect. If there is an Effect, state
the dollar amount. Indicate the letter first, then the number. Do not space between the letter and number. Do not use commas. For example, if your answer is
"Decreased by $4,000", enter D 4000).
1) Determine the effect on Assets:
2) Determine the effect on Total Liabilities
3) Determine the effect on Total StockHolders' Equity
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