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On January 15, 2011, Kaleesi Inc sold $190,000 in receivables to JSnows Co with recourse. JSnows Co charges a 3% fee upfront for receivables factored

On January 15, 2011, Kaleesi Inc sold $190,000 in receivables to JSnows Co with recourse. JSnows Co charges a 3% fee upfront for receivables factored with recourse. Kaleesi Inc receives 70% of the factored receivables on January 15, 2011 and will receive the balance on collection. Kaleesi Inc estimates a fair value of the recourse obligation to be $4,000. On July 1, 2011 JSnows Co pays $28,000 as final settlement of all collections. Record all journal entries for all dates of the transactions in the books of Kaleesi Inc.

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