Presented below is information forSage Hill, Inc. for 2017:

1.Beginning-of-the-year Accounts Receivable balance was $166,000.2.Net sales for the year were $1,500,000.$160,000of the sales were cash sales.Sage Hilldoes not offer cash discounts for early payment.3.Collections on accounts receivable during the year were $1,302,000.

Sage Hillplans to factor accounts receivable totaling $50,000at the end of the year.Sage Hillwill transfer the accounts to Herzog Factors, Inc. with recourse. Herzog Factors will retain3% of the balances for probable adjustments and assesses a finance charge of5%. The fair value of the recourse obligation is $1,700.

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.)