Maxwell Corporation Factored, with Guarantee (Recourse), $100,000 of Accounts Receivable

question 75

Multiple Choice

Maxwell Corporation factored, with guarantee (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.What amount of cash would Maxwell receive on the sale of receivables?

• A)$97,000.
• B)$95,000.
• C)$92,000.
• D)$100,000.

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Definitions:

Legal Issues

Concerns relating to the interpretation and application of laws in the workplace, including compliance and litigation.

Management-By-Objectives

Management-By-Objectives is a performance management approach where employees and managers define and agree on specific objectives to be achieved within a timeframe.

Performance Appraisal

A systematic evaluation process by which an employee's job performance is assessed, often influencing promotions, pay raises, and development.

Factors

elements or components that contribute to a particular outcome or situation.