Answer:
the loss that should be recorded is $480,000
Explanation:
The computation of the amount that recorded as a a loss on the receivable transfer is shown below:
= Account receivable × finance charge + estimation of the fair value of the recourse liability
= $6,000,000 × 3% + $300,000
= $180,000 + $300,000
= $480,000
hence, the loss that should be recorded is $480,000
We simply applied the above formula so that the correct value could come
And, the same is to be considered
