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A firm has a balance in its account receivable account and decides to sell the receivables to a factos without recourse. the factor imposes a 10% fee and agrees to pay $36,000 for the receivables. In addition, the seller and the factor agree that $3,000 of the sales price will be held back due to posible sales returns and allowances from these accounts.
A) what is the loss recorded by the firm that sells the receivables?
B) what is hte journal entry to record the sale of the receivables?
The partners agree that the implied partnership goodwill is to be recorded simultaneously with the admission of Jack. What is the total implied goodwill of the firm?
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