Respuesta :
When Mel's mattress company struggles financially, Mel decides to sell his accounts receivable to a finance company, known as a factor, pays him $60,000 for receivables with a total face value of $100,000.
Briefing:-
in this instance, does the factor earn a profit The factor profits if it can collect more than what it paid for the accounts.
Whenever Mel's Mattress Company faces financial difficulties?
Mel decides to sell his accounts receivable to a finance company known as a factor when Mel's Mattress Company experiences financial difficulties. The factor offers him $60,000 for receivables with a total face value of $100,000.
Which of the following statements most accurately sums up how the financial institution will earn from these accounts receivable?
If the factor is able to recoup the cost of the accounts, it makes a profit.
Which of the following is money that credit customers owe a company?
The funds or credits that your clients and customers owe to your business are included in your accounts receivable. Given that you are making money rather than losing it, it is seen as an asset rather than a burden.
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