Tamarisk Corp. factors $$385,000$ of accounts receivable with Vaughn Finance Corporation on a without recourse basis on July $1,2025.$ The receivables records are transferred to Vaughn Finance, which will receive the collections. Vaughn Finance assesses a finance charge of $1\mathrm{.}70\%$ 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$)$

Your answer is correct.

Prepare the journal entry on July $1,2025,$ for Tamarisk Corp. to record the sale 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 Account Titles and Explanation

Debit

Credit

July $1,$

$2025$

Cash

$359205$

Receivable from Factor

Loss on Sale of Receivables

$6545$

eTextbook and Media

Assistance Used

List of Accounts

Attempts: $1$ of $3$ used

$($b$)$

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