Indigo Woodcrafters sells $$202,300$ of receivables to Commercial Factors, Inc. on a with recourse basis. Commercial assesses a

finance charge of $5\%$ and retains an amount equal to $4\%$ of accounts receivable. Indigo estimates the fair value of the recourse liability

to be $$8,710.$

Prepare the journal entry for Indigo to record the sale. $($If no entry is required, select $"$No Entry" for the account titles and enter $0$

for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.$)$

Account Titles and Explanation

Debit

Credit