Angler Fish Co. factored $540,000 of its accounts receivable to Gause Finance Co. Gause Finance advanced 80% of the factored receivables and charged a 10% commission on the gross amount of the receivables. All conditions for a sale have been met.

Required:

Prepare the journal entries necessary to record the following:

a. The sale of the receivables.

b. The conclusion of the sale agreement when Angler would collect any balance remaining.