(Answered) 1 arness woodcrafters sells 250000 of receivables to

Accounting

1. Arness Woodcrafters sells $250,000 of receivables to Commercial Factors, Inc. on a with recourse basis. Commercial assesses a finance charge of 5% and retains an amount equal to 4% of accounts receivable. Arness estimates the fair value of the recourse obligation to be $8,000. Prepare the journal entry for Arness to record the sale.

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