Question $7$ of $31$

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Coronado Furniture factors $$910000$ of receivables to Sandhill, Inc. Sandhill assesses a $3\%$ service charge on the amount of receivables sold. Coronado Furniture factors its receivables regularly with Sandhill. What journal entry does Coronado make when factoring these receivables?

Cash

Service Charge Expense

Accounts Receivable

Cash

Loss on Sale of Receivables

Accounts Receivable

Cash

Accounts Receivable

Cash

Accounts Receivable

Gain on Sale of Receivables

$882700$

$27300$

$882700$

$27300$

$910000$

$882700$

$882700$

$910000$

$882700$

$27300$