Testbank Brief Exercise 156 Coronado Incorporated sold $199,000 of accounts receivable to Gannon Factors Inc. on a with recourse basis. Gannon assesses a 2% finance charge of the amount of accounts receivable and retains an amount equal to 7% of accounts receivable for possible adjustments. Prepare the journal entries for Coronado Incorporated and Gannon Factors to record the sale of the accounts receivable to Gannon assuming that the recourse liability has a fair value of $13,300. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Coronado Incorporated Gannon Factors Testbank Brief Exercise 156 Accounts Payable Accounts Receivable Advertising Expense Allowance for Doubtful Accounts Allowance for Sales Returns and Allowances Bad Debt Expense Cash Cash Over and Short Due from Factor Due to Customer Discount on Notes Payable Discount on Notes Receivable Equity Investments Freight-In Freight-Out Gain on Disposal of Land Interest Expense Interest Payable Interest Receivable Interest Revenue Inventory Land Loss on Disposal of Investment Loss on Sale of Receivables Maintenance and Repairs Expense Miscellaneous Expenses No Entry Notes Payable Notes Receivable Office Expense Owner's Drawings Petty Cash Postage Expense Prepaid Postage Purchase Discounts Recourse Liability Sales Discounts Sales Discounts Forfeited Sales Returns and Allowances Sales Revenue Service Revenue Supplies Supplies Expenses Unearned Sales Revenue