Complete journal entries

Journal entry on sellers books the company

Dr. Cash.$

Dr. Due from factor (reserve receivable)*.$

Dr. Loss on sale of receivables .$

Cr. Accounts Receivables..$

Journal entry: On the factors books the financing company

Dr. Accounts Receivables..$500,000

Cr. Due from borrower(reserve payable)*.............$

Cr. Financing Revenue..$

Cr. Cash$

2% Finance Charge

6% for probable adjustments