Recording a Sale of Accounts Receivable Without Recourse

Bappa Apparel manufactures fine sportswear for many national retailers and frequently sells its receivables to factors as a means of accelerating cash collections. Bappa sold $100,000 of receivables to a factor. The receivables were sold without recourse. The factor charged 6% and held back 5% for sales adjustments. Record Bappas required entry.

Account Name	Dr.	Cr.
Cash	?	?
Receivable from Factor	?	?
?	?	?
?	?	?