MCC, Inc. enters into an arrangement with Cookie Enterprises by which Cookie will purchase $100,400 of MCC's receivables and charge a 4% fee. As part of the agreement, Cookie will hold back $9,400 as additional security. MCC sold the receivable with recourse, and the estimated recourse liability is $3,500. Requirement Prepare the journal entry to record the agreement assuming that the transaction qualifies as a sale for MCC. (Record debits first, then credits. Exclude explanations from any journal entries.) Account Cash Loss on Sale of Receivables Receivable from Factor Accounts Receivable Recourse Obligation Current Year