Time Outstanding $ Amount Fraction expected to be uncollectible ...
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Accounting
| Time Outstanding | $ Amount | Fraction expected to be uncollectible |
|---|---|---|
| Less than 30 days | $34,100 | 1% |
| 31-60 days | 3,400 | 2% |
| 61-90 days | 7,400 | 6% |
| 91-120 days | 1,800 | 25% |
| 121+ days | 1,200 | 40% |
Weston Company plans to factor $11,000 of the receivables outstanding for less than 30 days with recourse for a fee of 3% of the receivables sold. What is the total cost of obtaining the cash through this factoring arrangement?
Group of answer choices
$220
$330
$440
$110
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