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AKS, Inc. enters into an arrangement with Fence Enterprises by which Fence will purchase $100,900 of AKS's receivables and charge a 2% fee. As part
AKS, Inc. enters into an arrangement with Fence Enterprises by which Fence will purchase $100,900 of AKS's receivables and charge a 2% fee. As part of the agreement, Fence will hold back $8,900 as additional security. AKS sold the receivable with recourse, and the estimated recourse liability is $2,700. Requirement Prepare the journal entry to record the agreement assuming that the transaction qualifies as a sale for AKS. (Record debits first, then credits. Exclude explanations from any journal entries.) Account Current Year
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