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  3. blossom incorporated factored $154,700 of accounts

Blossom Incorporated factored $154,700 of accounts receivable with Engram Factors Inc. on a with recourse...

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Accounting

Blossom Incorporated factored $154,700 of accounts receivable with Engram Factors Inc. on a with recourse basis. Engram assesses
a 3% finance charge of the amount of accounts receivable and retains an amount equal to 5% of accounts receivable for possible
adjustments.
Prepare the journal entry for Blossom to record the sale, assuming that the recourse liability has a fair value of $6,720.(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. List all debit entries before credit entries.)
Account Titles and Explanation
Debit
Credit
Recourse Liability
image

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