Use the following information for the following questions:
Braun Company factors $300,000 of accounts receivable with Schick Factors Inc. on a without recourse basis. The receivables records are transferred to Schick Factors, which takes over full responsibility for collections. Schick assesses a finance charge of 4% and withholds an initial amount equal to 7% of the accounts receivable for returns and allowances.
-The loss on disposal of receivables recorded by Braun is
A) $12,000.
B) $21,000.
C) $33,000.
D) $0.

Question

Use the following information for  the following questions:
Braun Company factors $300,000 of accounts receivable with Schick Factors Inc. on a without recourse basis. The receivables records are transferred to Schick Factors, which takes over full responsibility for collections. Schick assesses a finance charge of 4% and withholds an initial amount equal to 7% of the accounts receivable for returns and allowances.
-The loss on disposal of receivables recorded by Braun is
A) $12,000.
B) $21,000.
C) $33,000.
D) $0.

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The Answer of Use the following information for  the following questions:
Braun Company factors $300,000 of accounts receivable with Schick Factors Inc. on a without recourse basis. The receivables records are transferred to Schick Factors, which takes over full responsibility for collections. Schick assesses a finance charge of 4% and withholds an initial amount equal to 7% of the accounts receivable for returns and allowances.
-The loss on disposal of receivables recorded by Braun is
A) $12,000.
B) $21,000.
C) $33,000.
D) $0.

Use the Following Information for the Following Questions