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BE7-10 Wood Incorporated factored $150,000 of accounts receivable with Engram Factors Inc. Engram assesses a 2% finance charge of the amount of accounts receivable and
BE7-10 Wood Incorporated factored $150,000 of accounts receivable with Engram Factors Inc. Engram assesses a 2% finance charge of the amount of accounts receivable and retains an amount equal to 6% of accounts receivable for possible adjustments. Assume that the receivables are sold with recourse. Prepare the journal entry for Wood to record the sale, assuming that the recourse obligation has a fair value of $7,500. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.) Description/Account Debit Credit
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