Recording a Sale of Accounts Receivable With Recourse

Medda Company sold gross accounts receivable of $18,000 (with an allowance for doubtful accounts of $540) for $16,200 cash, with recourse. Estimated obligations due to the with-recourse provision amounted to $1,260. Record the sale of receivables entry for Medda Company.

Note: If a line in a journal entry isn't required for a transaction, select "N/A" as the account name and leave the Dr. or Cr. answer blank (zero).

\begin{tabular}{|ccc} \hline Account Name & & 4 \\ \hline To record the sale of receivables \end{tabular} Dr. Cr. To record the sale of receivables ints receivable of \$ ;1,260. Record the isn't required for a