Bonita is planning to factor some acounts receivable at the end of the year. Accounts totaling $12,300$ will be transferred to Credit Factors, Inc. with recourse. Credit factors will retain $5\%$ of the balances for probable adjustments and assesses a finance charge of $4\%.$ The fair value of the recourse obligation is $$1,052.$

Prepare the joumal entry to record the sale of the recerables.

Presented below is information for Bonita Company.

Beginning$-$of$-$the$-$year Accounts Receivable balance was $$18,300.$

Net sales $($all on account$)$ for the year were $$106,200.$ Bonita does not offer cash discounts.

Collections on accounts receivable during the year were $$82,900.$

Bonita is planning to factor some accounts receivable at the end of the year. Accounts totaling $$12,300$ will be transferred to Credit Factors, Inc. with recourse. Credit Factors will retain $5\%$ of the balances for probable adjustments and assesses a finance charge of $4\%.$ The fair value of the recourse obligation is $$1,052.$

Prepare the journal entry to record the sale of the receivables. $($If no entry is required, select $"$No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.$)$

Account Titles and Explanation

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