Which answer is correct? I just did the math real quick and came up with B. 538,685, so if that's right, what I say below is probably right…if it isn't, then what I say might still be right, but at bare minimum my math isn't lol.
Two things though to help with this problem…
1 – It's not asking for liabilities, only for how much money Scarborough was handed. So, you need to figure out what percentage Duff kept, and then you can figure out how many $$ Scarborough got. Duff kept 3% fee, 5% holdback (to cover uncollected ones, so this is the recourse part, though that doesn't matter for this question), and 54/365*15% for interest.
2 – The $9000 recourse obligation FV is not a liability, because Duff kept $30,000 to cover any uncollectable accounts. I'm pretty sure that if Duff collects $590k total, they'd return the excess $20k to Scarborough, so if anything, Scarborough could think they had an asset for $21k (the $30k they left with Duff minus the $9k anticipated obligation), however, conservatism dictates that such an asset would never be recognized. But, still, there's no liability, since the best estimate of the potential liability is less than what Scarborough has, essentially, already paid to cover that liability.
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