Prepare the journal entry to record the sale of receivables. (picture included)

Question 1 Presented below is information for Tamarisk, Inc. for 2017: 1. Beginning-of-the-year Accounts Receivable balance was $142,000. 2 Net sales for the year were $1,550,000. $130,000 of the sales were cash sales. Tamarisk does not offer cash discounts for early payment. Collections on accounts receivable during the year were $1,362,000. 3. Tamarisk plans to factor accounts receivable totaling $70,000 at the end of the year. Tamarisk will transfer the accounts to Herzog Factors, Inc. with recourse. Herzog Factors will retain 4% of the balances for probable adjustments and assesses a finance charge of 6%. The fair value of the recourse obligation is $3,300. Prepare the journal entry to record the sale of the receivables. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)