Highwood – Factoring receivable

Hi,

Highwood factored/sold receivable book value $10m to Easyfinance and receive payment $8.7m, will pay 2% per month on any uncollected balance. Highwood derecognized receivables and charge $1.3 in admin expense. If not factored allowance $0.6m made against receivable.

I had a look at the answer, they took the receivable value in the trial balance of $47100 and + the $10m – $0.6m.

Q1: what the question wants us to actually solve. If i hadnt look at the answer i wouldnt get what it wants.
Q2: It says company derecognize, but why the $10 is added instead of deducted from the total amount of receivable in the trial balance?
Q3: I understand that provision/allowance for receivable reduces the receivable value as such it is deducted. But why is the question speculating if it was not factored when it is already factored?
Q4: What is the treatment for the “pay 2% on uncollected balance”? What uncollected balance? of the $10m?
Q5: Why do they need to charged $1.3m to admin expense? instead of deducting from receivable? Where do the $1.3m go to now.

Thanks Chris.