Final answer:
The buyer assumes the risk of uncollectability when accounts receivables are sold without recourse. This means the seller is not liable if the debtors do not pay. The terms 'with recourse' and 'without recourse' define who bears the risk.
Step-by-step explanation:
The buyer assumes the risk of uncollectability when accounts receivables are sold without recourse. This financial arrangement means that the seller of the receivables is not responsible if the debtors fail to pay their debts. In contrast, when receivables are sold with recourse, the seller guarantees some or all of the debt and assumes the risk of uncollectability if the debtor defaults. Companies often sell accounts receivable to quickly access cash, a process known as factoring. The terms of the sale determine who assumes the risk of non-payment.