Trell Corporation transferred $64,000 of accounts receivable to a local bank. The transfer was made...
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Accounting
Trell Corporation transferred $64,000 of accounts receivable to a local bank. The transfer was made without recourse. The local bank remits 60% of the factored amount to Trell and retains the remaining 40%. When the bank collects the receivables, it will remit to Trell the retained amount less a fee equal to 1% of the total amount factored. Trell estimates a fair value of its 15% interest in the receivables of $15,000 (not including the 1% fee). Trell will show an amount receivable from factor of:
Multiple Choice
$14,360.
$15,000.
$25,600.
$24,960.
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