Cloud Recesses Inc. factors $5,000,000 of its accounts receivable with recourse for a finance charge...
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Accounting
Cloud Recesses Inc. factors $5,000,000 of its accounts receivable with recourse for a finance charge of 3%. The finance company retains an amount equal to 10% of the accounts receivable for possible adjustments. Cloud Recesses estimates the fair value of the recourse liability at $300,000. How much would be recorded as a gain (loss) by Cloud Recesses on the transfer of receivables?
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