Joe Novak Corporation Factored, with Recourse, $100,000 of Accounts Receivable

question 8

Multiple Choice

Joe Novak Corporation factored, with recourse, $100,000 of accounts receivable with Huskie Financing.The finance charge is 3%, and 5% was retained to cover sales discounts, sales returns, and sales allowances.Joe Novak estimates the recourse obligation at $2,400.What amount should Joe Novak report as a loss on sale of receivables?

• A)$ -0-.
• B)$3,000.
• C)$5,400.
• D)$10,400.

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Definitions:

Crop Failures

Instances where agricultural crops do not grow as expected due to factors such as drought, pests, disease, or extreme weather, leading to a significant loss in yield.

Cultural Ideal

A widely accepted standard or model of excellence within a culture, often embodying its values and aspirations.

Muscular

Relating to or affecting the muscles or the physical strength and power.

Passion

A strong and barely controllable emotion or enthusiasm for something or someone.