On jenson company factored receivables with a net

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16. On October 18, 2014, Jenson Company factored receivables with a net realizable value of $840,000 to Alee Company. Alee assesses a finance charge of 2.5% of the receivables and retains 5% of the receivables
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balance to cover any returns, allowances, discounts or write-offs. Assuming Jenson factors the receivables on a without recourse basis , the amount of cash received by Jensen on October 18, 2014 would be
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  • Fall '12
  • Staff
  • Balance Sheet, Generally Accepted Accounting Principles, Doubtful Accounts, unrealized holding gain

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