On May 1. Sheffield, Inc. factored $2,016,000 of accounts receivable with Quick Finance on a without recourse basis. Under the arrangement, Sheffield was to handle disputes concerning service, and Quick Finance was to make the collections, handle the sales discounts, and absorb the credit losses, Quick Finance assessed a finance charge of 6% of the total accounts receivable factored and retained an amount equal to 2% of the total receivables to cover sales discounts. Prepare the journal entry required on Sheffield's books on May 1. (Credit account titles are automatically indented when the amount Is entered. Do not indent manually) Date Account Tities and Explanation Debit Credit May 1 Prepare the journal entry required on Quick Finance's books on May 1. (Credit account titles are automatically indented when the amount is entered. Do not Indent manually) Debit Credit Date Account Titles and Explanation May 1 Assume Sheffield factors the $2,016,000 of accounts receivable with Quick Finance on a with recourse basis instead. The recourse provision has a fair value of $35,280. Prepare the journal entry required on Sheffield's books on May 1. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit May 1 Attempts: 0 of 1 used Submit Answer Save for Later