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:

Lateral Side

The part or surface of a body that is positioned toward the side, away from the midline.

Ankle Joint

A complex joint that connects the foot to the leg, comprising three bones (tibia, fibula, and talus) and allowing up-and-down and side-to-side movements of the foot.

Fibula

A long, slender bone located on the lateral side of the tibia in the lower leg, playing a significant role in stabilizing the ankle and supporting muscles of the lower leg.

Femur

The thigh bone, which is the longest, heaviest, and strongest bone in the human body, connecting the hip to the knee.