Exercise 8-7

On March 3, Pharoah Company sells $704,300of its receivables to National Factors Inc. National Factors Inc. assesses a service charge of its receivables to Western Factors Inc. Western Factors Inc. assesses a service charge of 6% of the amount of receivables sold.

Prepare the entry on Pharoah Company books to record the sale of the receivables.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Mar.3