A company factored $100,000 of accounts receivables. The factor discounted the receivables for 9% for the one year planned to take to collect the receivables. Using an annual interest rate of 9%, the present value of the receivables is $100,000 x 0.917 = $91,700. How much cash should the company expect to receive? $91,700 $91,000 $100,000 $108,300

A company factored $100,000 of accounts receivables. The factor discounted the receivables for 9% for the one year planned to take to collect the receivables. Using an annual interest rate of 9%, the present value of the receivables is $100,000 x 0.917 = $91,700. How much cash should the company expect to receive? $91,700 $91,000 $100,000 $108,300

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 14MC: Ancient Grains Unlimited has an accounts receivable turnover ratio of 3.34 times. The net credit...

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