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astraxan [27]
3 years ago
11

On February 1, 2020, Bonita Industries factored receivables with a carrying amount of $645000 to Sandhill Co.. Sandhill Co. asse

sses a finance charge of 3% of the receivables and retains 5% of the receivables. Relative to this transaction, you are to determine the amount of loss on sale to be reported in the income statement of Bonita Industries for February. Assume that Bonita factors the receivables on a without recourse basis. The loss to be reported is
Business
1 answer:
malfutka [58]3 years ago
5 0

Answer:

$19,350

Explanation:

The finance charge is 3%. If the 5% retention is a non-refundable security, then the total loss would be 8% (3%+5%).

The nature of the retention is not given, so it is considered that it is refundable, then the total loss would be $19,350 ($645,000*3%).

Thus, the total loss to be reported is $19,350

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Answer:

The correct answer is letter "D": the more substitutes a good has.

Explanation:

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The fee you must pay each month is known as the _____.
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A company has a capital structure that includes 30% debts, 10% preferred stock, and 60% common stock. The before-tax cost of deb
Alexxandr [17]

Answer:

option (C) 11.8%

Explanation:

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Hence.

The correct answer is option (C) 11.8%

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