Problem $7-8($Algo$)$ Factoring of accounts receivable; without recourse $[$LO$7-8]$

Samson Wholesale Beverage Company regularly factors its accounts receivable with the Milpitas Finance Company. On April $30,$

$2024,$ the company transferred $$980,000$ of accounts receivable to Milpitas. The transfer was made without recourse. Milpitas

remits $90\%$ of the factored amount and retains $10\%.$ When Milpitas collects the receivables, it remits to Samson the retained

amount less a $4\%$ fee $(4\%$ of the total factored amount$).$ Samson estimates the fair value of the last $10\%$ of its receivables to be

$$78,000.$

Required:

Prepare the journal entry for Samson Wholesale Beverage for the transfer of accounts receivable on April $30,$ assuming the sale

criteria are met.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Journal entry worksheet

$1$

Record the transfer of accounts receivable on April $30.$

Note: Enter debits before credits.