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ORANGE Co. factored 3,000,000 of accounts receivable without recourse. The factor required an assessment fee...

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Accounting

ORANGE Co. factored 3,000,000 of accounts receivable without recourse. The factor required an assessment fee of 10% of the accounts factored and a holdback of 15% of the accounts factored for possible sales returns and allowances. The accounts factored had a related allowance for doubtful accounts of 200,000. What amount of loss on factoring should be recognized?

A. 100,000

B. 650,000

C. 750,000

D. 300,000

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