361 Interest

A by-product of the exclusion of advances and guarantees from receipts is that under a production financing and distribution agreement a distributor will very often continue to charge the producer interest on money which has been expended by the distributor even where it has been recouped by the distributor. In the case of both the pre-sale (or negative pick-up) agreement and the production financing and distribution agreement, since accountings may be carried out on a quarterly basis, if a distributor receives funds just after the beginning of a quarter he may not bring them into account until the

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