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Assume Joseph sells all of the receivables over 91 days to Ace Factoring. Approximately how much of the remaining receivables would Joseph have to sell to receive $80,000?

Assume Joseph sells all of the receivables over 91 days to Ace Factoring. Approximately how much of the remaining receivables would Joseph have to sell to receive $80,000?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Joseph Upholstery's aging of accounts receivable is as follows: 0-90 days $150,000 91 days and over Joseph needs $80,000 to purchase upholstery fabric at an exhibition next month. Ace Factoring has offered to purchase Joseph's accounts receivable without recourse for A 5% factor's fee 15% reserve on the 0-90 days receivables 20% reserve on the 91 days and over receivables Assume Joseph sells all of the receivables over 91 days to Ace Factoring. Approximately how much of the remaining receivables would Joseph have to sell to receive $80,000? 64,000 A. $33,883 B. $33,684 C. $40,000 D. $32,000
Transcribed Image Text:Joseph Upholstery's aging of accounts receivable is as follows: 0-90 days $150,000 91 days and over Joseph needs $80,000 to purchase upholstery fabric at an exhibition next month. Ace Factoring has offered to purchase Joseph's accounts receivable without recourse for A 5% factor's fee 15% reserve on the 0-90 days receivables 20% reserve on the 91 days and over receivables Assume Joseph sells all of the receivables over 91 days to Ace Factoring. Approximately how much of the remaining receivables would Joseph have to sell to receive $80,000? 64,000 A. $33,883 B. $33,684 C. $40,000 D. $32,000
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