Pharoah Woodcrafters sells $214,400 of receivables to Commercial Factors, Inc. on a with recourse basis. Commercial assesses a finance charge of 5% and retains an amount equal to 4% of accounts receivable. Pharoah estimates that the recourse liability has a fair value of $4.105 instead of $8,210 estimated earlier. Prepare the journal entry for Pharoah to record the sale. (If no entry is required, select "No Entry" for the account titles and enter for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Cash Loss on Sale of Receivables Due from Factor 8210 Recourse Liability 214400 Accounts Receivable What are the effects of this change in the value of the recourse liability on Pharoah's financial statements? Pharoah's income will be higher by $ Pharoah's liabilities will be lower by $