Ivanhoe Company follows ASPE. It transfers $$395,000$ of its accounts receivable to an

independent trust in a securitization transaction on July $11,2023,$ receiving $95\%$ of the

receivables balance as proceeds. Ivanhoe will continue to manage the customer accounts,

including their collection. Ivanhoe estimates this obligation has a liability value of $$12,400.$ In

addition, the agreement includes a recourse provision with an estimated value of $$10,000.$ The

transaction is to be recorded as a sale.

$($a$)$ Prepare the journal entry on July $11,2023,$ for Ivanhoe Company to record the securitization

of the receivables. $($Credit account titles are automatically indented when the amount is entered. Do not

indent manually. If no entry isrequired,select $"$No Entry" for the account titles and enter $0$ for the

amounts.$)$Ivanhoe Company follows ASPE. It transfers $$395,000$ of its accounts receivable to an independent trust in a securitization

transaction on July $11,2023,$ receiving $95\%$ of the receivables balance as proceeds. Ivanhoe will continue to manage the customer

accounts, including their collection. Ivanhoe estimates this obligation has a liability value of $$12,400.$ In addition, the agreement

includes a recourse provision with an estimated value of $$10,000.$ The transaction is to be recorded as a sale.

$($a$)$ Prepare the journal entry on July $11,2023,$ for Ivanhoe Company to record the securitization of the receivables. $($Credit account

titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account

titles and enter $0$ for the amounts.$)$

Account Titles and Explanation

Debit

Credit