Vaughn Group factors $432,000$ of accounts receivable with Bramble Finance without guaranteeing any payment for possible credit

losses$($without recourse$)$ on July $1,2022.$ The receivables records are transferred to Bramble Finance, which will receive the

collections. Bramble Finance assesses a finance charge of $2\%$ of the amount of accounts receivable and retains an amount equal to $6\%$

of accounts receivable to cover sales discounts, returns, and allowances. The transaction is to be recorded as a sale.

$($a$)$

Prepare the journal entry on July $1,2022,$ for Vaughn Group to record the sale of receivables without recourse. $($If no entry is

required, select $"$No Entry" for the account titles and enter $0$ for the amounts. Credit account titles are automatically indented when the

amount is entered. Do not indent manually.$)$

Date

Account Titles and Explanation

Debit

Credit

July $1,$

$2022$