When a company sells its accounts receivable to a factor with recourse,it records a recourse obligation on its books.

Name: When a company sells its accounts receivable to a factor with recourse,it records a recourse obligation on its books.
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When a company sells its accounts receivable to a factor with recourse, it remains liable for any bad debts or non-payment by the customer. This creates a recourse obligation for the company, which should be recorded on its books.

When a Company Sells Its Accounts Receivable to a Factor