Wildhorse Corp. factors $441,000 of accounts receivable with Sheffield Finance Corporation on a without recourse basis on July 1, 2020 The receivables records are transferred to Sheffield Finance, which will receive the collections. Sheffield Finance assesses a finance charge of 1.80% 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) Your answer is correct Prepare the journal entry on July 1,2020, for Wildhorse Corp. 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) Account Titles and Explanation Debit Credit Date July 1, 2020 Cash 406602 Loss on Sale of Receivables 7938 26460 Due from Factor 441000 Accounts Receivable (b) Prepare the journal entry on July 1, 2020, for Sheffield Finance Corporation to record the purchase of receivables without recourse. (If no entry is required, select "No Entry" for the account titles and enter 0for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually) I Account Titles and Explanation Date Credit Debit July 1,2020