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Chapter 2
Accounting for Receivables
b) Calculate the day sales outstanding for the years 2015 and 2016.
c) At the 2015 year-end, Dommar Company agreed to sell some of its accounts receivable
with a fee paid to the purchaser. Why do you think a company would pay a fee to sell its
accounts receivable?
d) Dommar Company sold the accounts receivable on a limited recourse basis. Research and
define the meaning of selling on a limited recourse basis.
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