Kingbird Incorporated factored $$160,400$ of accounts receivable with Engram Factors Inc. on a with recourse basis. Engram assesses a $3\%$ finance charge of the amount of accounts receivable and retains an amount equal to $6\%$ of accounts receivable for possible adjustments.

Prepare the journal entry for Kingbird to record the sale, assuming that the recourse liability has a fair value of $$8,490.($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.$)$

Account Titles and Explanation

Debit

Credit