The following information relates to Zulu Company’s accounts receivable for 2017:
Accounts receivable, 1/1/2017 $ 750,000
Credit sales for 2017 3,100,000
Accounts written off during 2017 45,000
Collections from customers during 2017 2,400,000
Estimated uncollectible accounts at 12/31/2017 95,000
A factor has recently offered to purchase all of Zulu’s outstanding receivables without recourse for 94% of their face amount.
At what net amount should Zulu report its receivables assuming the company chooses to measure financial assets at fair value?
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