Case B Bappa Apparel manufactures fine sportswear for many national retailers and frequently sells its receivables to financing companies as a means of accelerating cash collections. Bappa transferred $$615,000$ of receivables from retailers to a financing company. The receivables were transferred with recourse on a notification basis. The financing company charged $8\%.$ Bappa has no obligation to the financing company other than to pay the account of a retailer in the event of a default. However, Bappa retains legal control over the receivables, and the financing company may not sell the accounts receivable to a third party. There were no bad debts.

$1.$ Should Bappa record the transfer of receivables as a sale$/$derecognition or as a borrowing?