Scenario 2: Oskar needs cash. All he has is his accounts receivable of $250,000. He doesn't want a loan. He goes to Clara Factoring Company on October 1, 2018 and asks it if he can sell (factor) his accounts receivable to the factoring company.

Clara Factoring Company agrees to purchase the accounts receivables. The terms are as follows.

• The sale will be with recourse. If there are any uncollectible accounts that Clara Factoring Company can't get, it can come back to Oskar for that money. (This becomes a liability to Oskar — called a recourse liability or recourse obligation.)

• Financing charge of 2% of accounts receivable.

• Clara Factoring Company will set aside 4% of the accounts receivable for any possible adjustments (sales discounts, sales returns, and/or sales allowances).

Oskar values this recourse obligation at fair value to be $3,000.

(1) Prepare the journal entry on October 1, 2018 for Oskar to record the sale of receivables with recourse.

(2) Prepare the journal entry on October 1, 2018 for Clara Factoring Company to record the purchase of receivables with recourse.