ishfaque

An idea...
When you sell the A/R, the A/R is reduced as well as the current liabilities are understated. As we all know, a buyer-recourse provision still allows the buyer to dump the A/R on the seller. But, the cash received from the buyer allowed the company more favorable financing in the short run. If the company needed financing and they didn't sell their A/R, the company would've had to take out a short-term liability/loan...and the discount for selling receivables for cash is much more favorable than the short-term liabilities for cash.

-maybe an adjustment for the "un"-incurred interest too?