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Sandhill Incorporated sold $290,000 of accounts recelvable to Monty Factors Inc on a with recourse basis. Monty assesses a 2% finance change of the balance

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Sandhill Incorporated sold $290,000 of accounts recelvable to Monty Factors Inc on a with recourse basis. Monty assesses a 2% finance change of the balance of accoumts recelvable and retains an amount equal to 6% of accounts recelvable for possible adjustments. Prepare the journal entries for Sandhili Incorporated and Monty Factors to record the sale of the accounts receivable to Monty; assuming that the recourse liability has a fair value of $14,500. (Credit account tities are automatically indented when the amount is entered. Do not hodent monually. Llet all deblt entries before credit entries)

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