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Arness Woodcrafters sells $239,400 of receivables to Commercial Factors, Inc. on a with recourse basis. Commercial assesses a finance charge of 7% and retains an
Arness Woodcrafters sells $239,400 of receivables to Commercial Factors, Inc. on a with recourse basis. Commercial assesses a finance charge of 7% and retains an amount equal to 6% of accounts receivable. Arness estimates the fair value of the recourse liability to be $8,630. Prepare the journal entry for Arness to record the sale.
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