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ecording the Sale of Accounts Receivable with Recourse On April 1, DOS Company...

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Accounting

ecording the Sale of Accounts Receivable with Recourse
On April 1, DOS Company sold $44,000 accounts receivable to PS2 Finance Company to obtain immediate cash. The related allowance for doubtful accounts was $1,760. The financial agreement specified a price of $37,400 on a with-recourse basis. DOS estimated a $880 recourse liability.
Required
Prepare the journal entry for DOS Company to sell the accounts receivable.
Note: If a line in the journal entry isn't required for the transaction, select "N/A" as the account name and leave the Dr. and Cr. answers blank (zero).
Account Name Dr. Cr.
Cash
37,400
0
Answer 1
Loss on Sale of Receivables
6,240
0
Answer 2
Recourse Liability
880
0
Answer 3
Accounts Receivable
0
44,000
Answer 4
Allowance for Doubtful Accounts
0
1,760
Answer 5
To record sale of accounts receivable.

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