want to know i was right On February 1, 2020, Norton Company transferred the...
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want to know i was right
On February 1, 2020, Norton Company transferred the receivables on a without recourse basis with a carrying amount of $100,000 to Koch Company. Koch Company remits 93% of the factored amount and retains 7%. When Koch collects the receivable, it will remit to Norton the retained amount (which Norton estimates has a fair value of $5,000) less a 3% fee (3% of the total factored amount. Relative to this transaction, you are to determine the amount of loss on sale to be reported in the income statement of Norton Company for February. Multiple Choice $0 $3,000 $5,000 $12,000
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