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2. Green Company needed some cash --- fast. So it factored $200,000 of its accounts receivable with Chase Bank (non- recourse basis). Chase Bank assessed a finance charge of 3% of the receivables and also required a reserve deposit in an amount equal to 5% of the receivables to cover probable adjustments from sales discounts, returns, and allowances. How much immediate cash does Green Company record as a result of factoring (selling) its receivables? B. SO C. $200,000 D. $184,000 E. $194,000 $190,000 F. G. None of the above.

2. Green Company needed some cash --- fast. So it factored $200,000 of its accounts receivable with Chase Bank (non- recourse basis). Chase Bank assessed a finance charge of 3% of the receivables and also required a reserve deposit in an amount equal to 5% of the receivables to cover probable adjustments from sales discounts, returns, and allowances. How much immediate cash does Green Company record as a result of factoring (selling) its receivables? B. SO C. $200,000 D. $184,000 E. $194,000 $190,000 F. G. None of the above.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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2. Green Company needed some cash --- fast. So it factored $200,000 of its accounts receivable with Chase Bank (non- recourse basis). Chase Bank assessed a finance charge of 3% of the receivables and also required a reserve deposit in an amount equal to 5% of the receivables to cover probable adjustments from sales discounts, returns, and allowances. How much immediate cash does Green Company record as a result of factoring (selling) its receivables? B. SO C. $200,000 D. $184,000 E. $194,000 $190,000 F. G. None of the above.
Transcribed Image Text:2. Green Company needed some cash --- fast. So it factored $200,000 of its accounts receivable with Chase Bank (non- recourse basis). Chase Bank assessed a finance charge of 3% of the receivables and also required a reserve deposit in an amount equal to 5% of the receivables to cover probable adjustments from sales discounts, returns, and allowances. How much immediate cash does Green Company record as a result of factoring (selling) its receivables? B. SO C. $200,000 D. $184,000 E. $194,000 $190,000 F. G. None of the above.
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