Arad Inc factors $700,000 of accounts receivable with Sama Financing Inc. on a with recourse basis. Sama Financing will collect the receivables and assesses a finance charge of 3.5% of the amount of accounts receivable and also withholds on amount equal to 6.25% of accounts receivable to cover probable adjustments. The recourse obligation is estimated to be $7,000. Arad prepares financial statements using IFRS and the transfer of accounts receivable qualifies for a sale. Required- Prepare the journal entry in the books of Arad Inc