Record the entry if receivables are factored under option one.

On June 30, 2016. Blondie Fixtures was considering alternatives to bolster its cash position. Option One called for transferring $480,000 in accounts receivable to Dogwood Finance Company without recourse for a 4% fee. Option Two calls for Blondie to transfer the $480,000 in receivables to Dogwood with recourse. Dogwood's charges a 3% fee for receivables factored with recourse. Option Two meets the conditions to be considered a sale, but Blondie estimates a $3,800 recourse liability. Under either option. Dogwood will immediately remit 85% of the factored receivables to Blondie. and retain 15%. When Dogwood collects the remaining receivables, it remits the amount, less the fee. to Blondie. Blondie estimates that the fair value of the final 15% of the receivables is $29,000 (ignoring the factoring fee). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Required: Prepare any necessary journal entry or entries if receivables are factored under Option One