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Indigo Woodcrafters sells $202,300 of receivables to Commercial Factors, Inc. on a with recourse basis....

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Accounting

Indigo Woodcrafters sells $202,300 of receivables to Commercial Factors, Inc. on a with recourse basis. Commercial assesses a
finance charge of 5% and retains an amount equal to 4% of accounts receivable. Indigo estimates the fair value of the recourse liability
to be $8,710.
Prepare the journal entry for Indigo to record the sale. (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
image

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