Business, 30.03.2020 21:02 teamroper35

During 2004 Elway Corporation transferred inventory to Howell Corporation and agreed to repurchase the merchandise early in 2005. Howell then used the inventory as collateral to borrow from Norwalk Bank, remitting the proceeds to Elway. In 2005 when Elway repurchased the inventory, Howell used the proceeds to repay its bank loan. 4. This transaction is known as a(n):

a. consignment.
b. installment sale.
c. assignment for the benefit of creditors.
d. product financing arrangement.

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