Kingbird Corporation factors $$271,300$ of accounts receivable with Kathleen Battle Financing, Inc. on a with recourse basis. Kathleen Battle Financing will collect the receivables. The receivables records are transferred to Kathleen Battle Financing on August $15,2025.$ Kathleen Battle Financing assesses a finance charge of $2\%$ of the amount of accounts receivable and also reserves an amount equal to $4\%$ of accounts receivable to cover prob$$ble adjustments.

$($b$)$ Assume that the conditions are met for a transfer of receivables with recourse to be accounted for as a sale. Prepare the journal entry on August $15,2025,$ for Kingbird to record the sale of receivables, assuming the recourse obligation has a fair value of $$4,270.($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. List all debit entries before credit entries.$)$

Date Account Titles and Explanation

Debit

Credit

Aug. $15,2025$