The controller for Martinez Corporation has reached an agreement with Marigold Financing Ltd. to sell a large portion of Martinez's past-due accounts receivable. Martinez agrees to sell $1,900,000 of accounts receivable to Marigold with recourse. Martinez's controller estimates that the fair value of Martinez's liability to pay Marigold for uncollectible accounts is $171,000. Marigold will charge Martinez 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 Marigold Financing Ltd.

Calculate the net proceeds and the gain or loss on the disposal of receivables to Marigold Financing Ltd. Net proceeds $ on disposal of receivables $ Prepare the journal entry on the books of Martinez Corporation to record the disposal of receivables to Marigold 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 0 for the amounts.) Account Titles and Explanation Debit Credit