Oliver Inc factors $2,000,000 of its accounts receivables with recourse for a finance charge of...
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Accounting
Oliver Inc factors $2,000,000 of its accounts receivables with recourse for a finance charge of 2%. The finance company retains an amount equal to 10% of the accounts receivable for possible adjustments. Oliver estimates the fair value of the recourse liability at $100,000.
What would be recorded as a gain or (loss) on the transfer of receivables?
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