Presented below is information for Jones Company.

1.		Beginning-of-the-year Accounts Receivable balance was $19,200.
2.		Net sales (all on account) for the year were $102,500. Jones does not offer cash discounts.
3.		Collections on accounts receivable during the year were $90,900.

Jones is planning to factor some accounts receivable at the end of the year. Accounts totaling $10,600 will be transferred to Credit Factors, Inc. with recourse. Credit Factors will retain 7% of the balances for probable adjustments and assesses a finance charge of 6%. The fair value of the recourse obligation is $1,060.

Prepare the journal entry to record the sale of the receivables.

Compute Jones