Receivables with recourse

hi all, what exactly does “selling accounts receivable with recourse” mean? i vaguely remember it from L1. does that mean that you sell them but you still have the risk of people not paying their bills? in reading 30 it talks about adding them back to the bal sheet as an adjustment if sold with recourse.

yes, you retain all the risks of nonpayment if you sell w/ recourse.