Vaughn Incorporated factored $135,100 of accounts receivable with Bramble Factors Inc. on a without-recourse basis. Bramble assesses a 3% finance charge of the amount of accounts receivable and retains an amount equal to 7% of accounts receivable for possible adjustments.

Prepare the journal entry for Vaughn Incorporated and Bramble Factors to record the factoring of the accounts receivable to Bramble. (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.)

No. Account Titles and Explanation Debit Credit

Vaughn

1.

enter an account title for the journal entry for Vaughn enter a debit amount enter a credit amount

enter an account title for the journal entry for Vaughn enter a debit amount enter a credit amount

enter an account title for the journal entry for Vaughn enter a debit amount enter a credit amount

enter an account title for the journal entry for Vaughn enter a debit amount enter a credit amount

Bramble

2.

enter an account title for the journal entry for Bramble enter a debit amount enter a credit amount

enter an account title for the journal entry for Bramble enter a debit amount enter a credit amount

enter an account title for the journal entry for Bramble enter a debit amount enter a credit amount

enter an account title for the journal entry for Bramble enter a debit amount enter a credit amount