Use the Following Information for the Following Questions

question 54

Multiple Choice

Use the following information for the following questions:
Braun Company factors $300,000 of accounts receivable with Schick Factors Inc. on a without recourse basis. The receivables records are transferred to Schick Factors, which takes over full responsibility for collections. Schick assesses a finance charge of 4% and withholds an initial amount equal to 7% of the accounts receivable for returns and allowances.
-The loss on disposal of receivables recorded by Braun is

• A) $12,000.
• B) $21,000.
• C) $33,000.
• D) $0.

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Definitions:

Correlational Study

A research method that examines the extent to which two variables are related, without inferring a cause-and-effect relationship between them.

Random Assignment

A method used in experiments to place participants into different groups in a way that each participant has an equal chance of being in any group, minimizing biases.

Participants

Individuals who take part in a study or experiment and whose behavior or responses are observed or measured.

Experiment

A study in which people are randomly assigned to a condition.