(Answered) Question - arness woodcrafters sells 242500 of receivables

Accounting

Question - Arness Woodcrafters sells $242,500 of receivables to Commercial Factors, Inc. on a with recourse basis. Commercial assesses a finance charge of 6% and retains an amount equal to 5% of accounts receivable. Arness estimates the fair value of the recourse liability to be $9,770.

Prepare the journal entry for Arness to record the sale.

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