The controller forSarasotaCorporation has reached an agreement withBridgeportFinancing Ltd. to sell a large portion ofSarasota's past-due accounts receivable.Sarasotaagrees to sell $1,960,000of accounts receivable toBridgeportwith recourse.Sarasota's controller estimates that the fair value ofSarasota's liability to payBridgeportfor uncollectible accounts is $178,000.Bridgeportwill chargeSarasota8% of the total receivables balance as a financing fee, and will withhold an initial amount of9%.

Current Attempt in Progress 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 $ v on disposal of receivables $ 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 0 for the amounts.)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 0 for the amounts.) Account Titles and Explanation Debit Credit