Gar Co. factored its receivables without recourse with Ross Bank. Gar received cash as a result of this transaction, which is best described as a:
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a. | Loan from Ross to be repaid by the proceeds from Gar's accounts receivable. | |
b. | Sale of Gar's accounts receivable to Ross, with the risk of uncollectible accounts retained by Gar. | |
c. | Loan from Ross collateralized by Gar's accounts receivable. | |
d. | Sale of Gar's accounts receivable to Ross, with the risk of uncollectible accounts transferred to Ross. |
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