Monty Inc. factors receivables with a carrying amount of $247,900 to Joffrey Company for $172,700 on a with recourse basis.

The recourse provision has a fair value of $1,640. This transaction should be recorded as a sale.

Prepare the appropriate journal entry to record this transaction on the books of Monty Inc. (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