The controller for Novak Corporation has reached an agreement with Flounder Financing Ltd. to sell a large portion of Novak’s past-due accounts receivable. Novak agrees to sell $1,920,000 of accounts receivable to Flounder with recourse on December 15th, 2020. Flounder will charge Novak 7% of the total receivables balance as a financing fee, and will withhold an initial amount of 8%. The recourse liability is $20,000

Prepare the journal entry on the books of Novak Corporation to record the disposal of receivables to Flounder Financing Ltd.