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SMC, Inc. enters into an arrangement with Krouse Enterprises by which Krouse will purchase $100,300 of SMC's receivables and charge a 8% fee. As part

SMC, Inc. enters into an arrangement with Krouse Enterprises by which Krouse will purchase $100,300 of SMC's receivables and charge a 8% fee. As part of the agreement, Krouse will hold back $9,400 as additional security. SMC sold the receivable with recourse, and the estimated recourse liability is $2,600 1 Requirement 1 Prepare the journal entry to record the agreement assuming that the transaction qualifies as a sale for SMC (Record debits first, then credits. Exclude explanations from any journal entries.) Account Current Year 1 Choose from any list or enter any number in the input fields and then continue to the nextimage text in transcribed

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