Bappa Apparel manufactures sportswear for many national retailers and frequently sells its receivables to factors as a means of accelerating cash collections. Bappa sold $70,000 of receivables to a factor. The receivables were sold without recourse. The factor charged 6% and held back 5% for sales adjustments. Record the sale of receivables entry for Bappa.

	Account Name	Dr.	Cr.
	CashAccounts ReceivableAllowance for Doubtful AccountsInterest ReceivableReceivable from FactorNote ReceivableDiscount on Note ReceivablePayable to Seller of ReceivablesRefund LiabilityRecourse LiabilityNote PayableSales RevenueSales ReturnsSales DiscountSales Discount ForfeitedFinancing RevenueInterest RevenueCost of Goods SoldBad Debt ExpenseFinance ExpenseInterest ExpenseLoss on Sale of NoteLoss on Sale of ReceivablesN/A		Answer
	CashAccounts ReceivableAllowance for Doubtful AccountsInterest ReceivableReceivable from FactorNote ReceivableDiscount on Note ReceivablePayable to Seller of ReceivablesRefund LiabilityRecourse LiabilityNote PayableSales RevenueSales ReturnsSales DiscountSales Discount ForfeitedFinancing RevenueInterest RevenueCost of Goods SoldBad Debt ExpenseFinance ExpenseInterest ExpenseLoss on Sale of NoteLoss on Sale of ReceivablesN/A		Answer
	CashAccounts ReceivableAllowance for Doubtful AccountsInterest ReceivableReceivable from FactorNote ReceivableDiscount on Note ReceivablePayable to Seller of ReceivablesRefund LiabilityRecourse LiabilityNote PayableSales RevenueSales ReturnsSales DiscountSales Discount ForfeitedFinancing RevenueInterest RevenueCost of Goods SoldBad Debt ExpenseFinance ExpenseInterest ExpenseLoss on Sale of NoteLoss on Sale of ReceivablesN/A		Answer
	CashAccounts ReceivableAllowance for Doubtful AccountsInterest ReceivableReceivable from FactorNote ReceivableDiscount on Note ReceivablePayable to Seller of ReceivablesRefund LiabilityRecourse LiabilityNote PayableSales RevenueSales ReturnsSales DiscountSales Discount ForfeitedFinancing RevenueInterest RevenueCost of Goods SoldBad Debt ExpenseFinance ExpenseInterest ExpenseLoss on Sale of NoteLoss on Sale of ReceivablesN/A		Answer
	To record the sale of receivables.