At the end of June, the Marquess Company factored $200,000 in accounts receivable with Homemark...
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At the end of June, the Marquess Company factored $200,000 in accounts receivable with Homemark Finance. The transfer is made with recourse but is still accounted for as a sale. Homemark charges a fee of 3% of receivables factored. During July, $150,000 of the factored receivables are collected. What amount of loss on sale of receivables would the company record in June assuming the estimated recourse liability is $2,000? A-$4,000 B-$8,000 C-Zero. D-$6,500
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