Ming Company Factors Without Recourse $6,000,000 of Its Accounts Receivable

question 117

Multiple Choice

Ming Company factors without recourse $6,000,000 of its accounts receivable for a finance charge of 6%. The finance company retains an amount equal to 8% of the accounts receivable for possible adjustments. What amount of cash would Ming receive as a result of this initial transaction?

• A) $5,640,000
• B) $5,520,000
• C) $5,160,000
• D) $6,000,000

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Definitions:

Knowledge Repositories

Centralized digital databases that store, manage, and disseminate information and knowledge for supporting learning, decision making, and innovation within an organization.

E-HR Functions

Electronic human resources functions that leverage internet technology for more efficient and effective HR management practices.

Mobile Technology

A term that refers to the various types of cellular communication technology devices, including smartphones, tablets, and wearable devices.

HR Apps

Software applications designed to facilitate human resources functions, such as recruitment, payroll, and employee management.