Exercise 7-21 Presented below is information for Ayayai Company 1. Beginning-of-the-year Accounts Receivable balance was $19,800 2. Net sales (all on account) for the year were $109,400. Ayayai does not offer cash discounts. 3. Collections on accounts receivable during the year were $88,300 Ayayai is planning to factor some accounts receivable at the end of the year. Accounts totaling $14,100 will be transferred to Credit Factors, Inc. with recourse. Credit Factors will retain 6% of the balances for probable adjustments and assesses a finance charge of 5%. The fair value of the recourse obligation is $1,030 Your answer is partially correct. Try again. 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) Account Titles and Explanation Debit Credit Cash Due from Factor Loss on Sale of Recelvables Accounts Receivable Recourse Llability Your answer is incorrect. Try again. Compute Ayayai's accounts receivable turnover for the year, assuming the receivables are so (Round answers to 2 decima/paces, e 9-4 . Accounts receivable turnover times Days to collect accounts receivable days