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Crane Corp. factors $365,000of accounts receivable with Cheyenne Finance Corporation on a without recourse basis on July 1, 2017. The receivables records are transferred to Cheyenne Finance, which will receive the collections. Cheyenne Finance assesses a finance charge of1.50% of the amount of accounts receivable and retains an amount equal to6% of accounts receivable to cover sales discounts, returns, and allowances. The transaction is to be recorded as a sale.

(a)

Prepare the journal entry on July 1, 2017, for Crane Corp. to record the sale of receivables without recourse