Swifty Corp. factors $$393,000$ of accounts receivable with Nash Finance Corporation on a without recourse basis on July $1,2025.$ The receivables records are transferred to Nash Finance, which will receive the collections. Nash Finance assesses a finance charge of $1\mathrm{.}90\%$ of the amount of accounts receivable and retains an amount equal to $5\%$ of accounts receivable to cover sales discounts, returns, and allowances. The transaction is to be recorded as a sale.

$($a$)$

$($b$)$

Your answer is partially correct.

Prepare the journal entry on July $1,2025,$ for Nash Finance Corporation to record the purchase of receivables without recourse. $($If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.$)$

Date

July $1,2025$

Account Titles and Explanation

Accounts Receivable

Cash

Debit

Credit

Credit