Question 2 of 14

Question 2 of 14 View Policies Show Attempt History Current Attempt in Progress 0.87 / 1 Sarasota Corporation factors $250,500 of accounts receivable with Kathleen Battle Financing, Inc. on a with recourse basis. Kathleen Battle Financing will collect the receivables. The receivables records are transferred to Kathleen Battle Financing on August 15, 2020. Kathleen Battle Financing assesses 3 finance charge of 2% of the amount of accounts receivable and also reserves an amount equal to 4% of accounts receivable to cover probable adjustments. (b) Assume that the conditions are metfor a transfer of receivables with recourse to be accounted for as a sale. Prepare the journal entry on August 15, 2020, for Sarasota to record the sale of receivables, assuming the recourse obligation has a fair value of $4,890. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts Credit account titles are automatically indented when the amount is entered. DO not indent manually.) Date Account Titles and Explanation Aug. 15, 2020 e Textbook and Media List of Accounts Save for Later Attempts: 2 of 3 used Credit Submit Ansvr