What would be recorded as a gain on the transfer

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Question - Sun Inc. factors P 2,000,000 of its accounts receivables without guarantee (recourse) for a finance charge of 5%. The finance company retains an amount equal to 10% of the accounts receivable for possible adjustments. What would be recorded as a gain (loss) on the transfer of receivables?

Gain of P 100,000.

Loss of P 100,000.

Loss of P 300,000.

Loss of P 200,000.

Reference no: EM132793172

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