What amount should wilkinson report as a loss on sale

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Wilkinson Corporation factored, with recourse, $400,000 of accounts receivable with Huskie Financing. The finance charge is 3%, and 5% was retained to cover sales discounts, sales returns, and sales allowances. Wilkinson estimates the recourse obligation at $9,600. What amount should Wilkinson report as a loss on sale of receivables?

$ -0-.
$12,000.
$21,600.
$41,600.

Reference no: EM131016764

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