Securitization of Receivables:

From the entity selling the receivables perspective, Present the journal entries to

(1) record the proposed securitization transaction, and

(2)mark the residual interest to market, as required by SFAS No. 140.

Tranche (Category)	Amount	Rate	Price	Fair Value
A1	131,233,000	5.50%	100%	131,233,000
A2	87,489,000	6.00%	95%	83,114,550
Gross proceeds from securitization				214,347,550
Retained interests				8,480,638
Estimated upfront transaction costs				2,190,000
Servicing rights				1,642,500