Wood Incorporated factored $600,000 of accounts receivable with Engram Factors Inc. on a with recourse basis. Engram assesses a 4% finance charge of the amount of accounts receivable and retains an amount equal to 15% of accounts receivable for possible adjustments. Wood Inc. estimated recourse losses to be $15,000.

Prepare the journal entry for Wood to record the sale. Also, record the journal entry for Engram Factors, Inc. to record the purchase of the receivables