The controller for Flounder Corporation has reached an agreement with Novak Financing Ltd. to sell a large portion of Flounder's past-due accounts receivable. Flounder agrees to sell $1,870,000 of accounts receivable to Novak with recourse. Flounder's controller estimates that the fair value of Flounder's liability to pay Novak for uncollectible accounts is $168,000. Novak will charge Flounder 8% of the total receivables balance as a financing fee, and will withhold an initial amount of 9%. Calculate the net proceeds and the gain or loss on the disposal of receivables to Novak Financing Ltd. Net proceeds $ 1552100 Loss on disposal of receivables A 317900 Prepare the journal entry on the books of Flounder Corporation to record the disposal of receivables to Novak Financing Ltd. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit Cash 1551800 Due from Factor 168300 Loss on Disposal of Receivables 317900 Accounts Receivable 1870000 Recourse Liability 168000