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Ayayai Financial Services has agreed to purchase $580, 000 of Whispering Winds Corporation's outstanding accounts receivable, with recourse. Whispering Winds's controller estimates that the fair value of the uncollectible accounts is S 92,800. Ayayai will charge Whispering Winds 10% of the total receivables balance as a financing fee, and will withhold an initial amount of 20 %. (a) Your answer is partially correct. Calculate the net proceeds and the gain or loss on the sale of receivables to Ayayai. Net proceeds Senter a dollar amount 406000 Incorrect answer select an option Loss Correct answer on disposal of receivables Senter a dollar amount 150800 Correct answer

Ayayai Financial Services has agreed to purchase $580, 000 of Whispering Winds Corporation's outstanding accounts receivable, with recourse. Whispering Winds's controller estimates that the fair value of the uncollectible accounts is S 92,800. Ayayai will charge Whispering Winds 10% of the total receivables balance as a financing fee, and will withhold an initial amount of 20 %. (a) Your answer is partially correct. Calculate the net proceeds and the gain or loss on the sale of receivables to Ayayai. Net proceeds Senter a dollar amount 406000 Incorrect answer select an option Loss Correct answer on disposal of receivables Senter a dollar amount 150800 Correct answer

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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Alpesh bhaliya

Ayayai Financial Services has agreed to purchase $580, 000 of Whispering Winds Corporation's outstanding accounts receivable, with recourse. Whispering Winds's controller estimates that the fair value of the uncollectible accounts is $ 92,800. Ayayai will charge Whispering Winds 10% of the total receivables balance as a financing fee, and will withhold an initial amount of 20 %. (a) Your answer is partially correct. Calculate the net proceeds and the gain or loss on the sale of receivables to Ayayai. Net proceeds Senter a dollar amount 406000 Incorrect answer select an option Loss Correct answer on disposal of receivables Senter a dollar amount 150800 Correct answer
Transcribed Image Text:Ayayai Financial Services has agreed to purchase $580, 000 of Whispering Winds Corporation's outstanding accounts receivable, with recourse. Whispering Winds's controller estimates that the fair value of the uncollectible accounts is $ 92,800. Ayayai will charge Whispering Winds 10% of the total receivables balance as a financing fee, and will withhold an initial amount of 20 %. (a) Your answer is partially correct. Calculate the net proceeds and the gain or loss on the sale of receivables to Ayayai. Net proceeds Senter a dollar amount 406000 Incorrect answer select an option Loss Correct answer on disposal of receivables Senter a dollar amount 150800 Correct answer
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