The controller for Sarasota Corporation has reached an agreement with Bridgeport Financing Ltd. to sell a large portion of Sarasota's past-due accounts receivable. Sarasota agrees to sell $1,960,000 of accounts receivable to Bridgeport with recourse. Sarasota's controller estimates that the fair value of Sarasota's liability to pay Bridgeport for uncollectible accounts is $178,000. Bridgeport will charge Sarasota 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 Bridgeport Financing Ltd. Net proceeds SL Loss on disposal of receivables $ 1.644,800 315,200 Prepare the journal entry on the books of Sarasota Corporation to record the disposal of receivables to Bridgeport 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 for the amounts.) Credit Account Titles and Explanation Cash Debit 1,646,800 176,400 315,200 Due from Factor Loss on Disposal of Receivables Accounts Receivable Recourse Liability 960.000 178,000