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Question #6 Honest Corp. transfers all of its receivables (with a face value of $300,000) to ZZZ Factors on August 13. ZZZ Factors generally assesses a finance charge of 2% of the face value of the receivables and withholds an amount equal to 4% to cover any possible returns and allowances. The fair value of any recourse liability is $2,000. Record this transfer assuming that conditions are met to allow it to be recorded as a (a) transfer without recourse (b) transfer with recourse (c) sale (d) collateralized borrowing (e) transfer without recourse but Honest Corp. has an allowance for bad debts account of $9,000.

Question \# 6 Honest Corp. transfers all of its receivables (with a face value of $300,000 ) to ZZZ Factors on August 13. ZZZ Factors generally assesses a finance charge of 2% of the face value of the receivables and withholds an amount equal to 4% to cover any possible returns and allowances. The fair value of any recourse liability is $2,000. Record this transfer assuming that conditions are met to allow it to be recorded as a (a) transfer without recourse (b) transfer with recourse (c) sale (d) collateralized borrowing (e) transfer without recourse but Honest Corp. has an allowance for bad debts account of $9,000. Question \# 6 Honest Corp. transfers all of its receivables (with a face value of $300,000 ) to ZZZ Factors on August 13. ZZZ Factors generally assesses a finance charge of 2% of the face value of the receivables and withholds an amount equal to 4% to cover any possible returns and allowances. The fair value of any recourse liability is $2,000. Record this transfer assuming that conditions are met to allow it to be recorded as a (a) transfer without recourse (b) transfer with recourse (c) sale (d) collateralized borrowing (e) transfer without recourse but Honest Corp. has an allowance for bad debts account of $9,000

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