When does a company record the transfer of accounts receivable as a sale? As a secured borrowing (a ...

 A company (transferor) records the transfer of accounts receivable to a transferee as a sale when all of the following conditions are met:
(1) The receivables have been isolated from the selling company.
(2) The factor has the ability to pledge or exchange the receivables.
(3) The transferor does not maintain effective control over the receivables.
If the conditions for a sale are not met, the company records the proceeds from the transfer of accounts receivable as a secured borrowing with the receivables serving as collateral as if the company pledged the receivables.

Genius!!!!!!