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Riverbed Incorporated factored $158,900 of accounts receivable with Engram Factors Inc. on a with recourse basis. Engram assesses a 3% finance charge of the amount
Riverbed Incorporated factored $158,900 of accounts receivable with Engram Factors Inc. on a with recourse basis. Engram assesses a 3% finance charge of the amount of accounts receivable and retains an amount equal to 5% of accounts receivable for possible adjustments. Prepare the journal entry for Riverbed to record the sale, assuming that the recourse liability has a fair value of $7,760.
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