Please indicate whether an account is an asset (A), liability (L), or equity (E) for (1) journal entries, (2) adjusting entries, and (3) closing entries.

Arness Woodcrafters sells $300,000 of receivables to Commercial Factors, Inc. on a with recourse basis. Commercial assesses a finance charge of 6% and retains an amount equal to 3% of accounts receivable. Arness estimates the fair value of the recourse obligation to be $8,000. Prepare the (1) journal entries, (2) adjusting entries, and (3) closing entries for a) Arness and (b) Commercial Factors