Cullumber Corp. factors $370,000 of accounts receivable with Riverbed Finance Corporation on a without recourse basis on July 1. 2020. The receivables records are transferred to Riverbed Finance, which will receive the collections. Riverbed Finance assesses a finance charge of 1.80% of the amount of accounts receivable and retains an amount equal to 5% of accounts receivable to cover sales discounts, returns, and allowances. The transaction is to be recorded as a sale. (a) Your Answer Correct Answer (Used) Prepare the journal entry on July 1, 2020, for Cullumber Corp. to record the sale of receivables without recourse. (If no entry is required, select "No Entry for the account titles and enter for the amounts. Credit acount titles are automatically indented when the amount is entered. Do not indent manually) Date Account Titles and Explanation Debit Credit July 1. Loss on Sale of Receivables 2020 6,660 Cash 344,840 Due from Factor 18,500 370,000 Accounts Receivable (b) Prepare the journal entry on July 1, 2020, for Riverbed Finance Corporation to record the purchase of receivables without recourse. (If no entry is required, select "No Entry" for the account titles and enter for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually) Account Titles and Explanation Debit Credit Date (b) Prepare the journal entry on July 1, 2020, for Riverbed Finance Corporation to record the purchase of receivables without recourse. (If no entry is required, select "No Entry" for the account titles and enter Ofor the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Date July 1, 2020 e Textbook and Media List of Accounts Attempts: 0 of 3 used Submit Answer Save for Later