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Novak Corporation factors $270,300 of accounts receivable with Kathleen Battle Financing, Inc. on a with...

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Accounting

Novak Corporation factors $270,300 of accounts receivable with Kathleen Battle Financing, Inc. on a with recourse basis. Kathleen Battle Financing will collect the receivables. The receivables records are transferred to Kathleen Battle Financing on August 15,2025. Kathleen Battle Financing assesses a finance charge of 2% of the amount of accounts receivable and also reserves an amount equal to 4% of accounts receivable to cover probable adjustments.
(b) Assume that the conditions are met for a transfer of receivables with recourse to be accounted for as a sale. Prepare the journal entry on August 15,2025, for Novak to record the sale of receivables, assuming the recourse obligation has a fair value of $4,280.(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.)
\table[[Date,Account Titles and Explanation,Debit,Credit],[Aug.15,2025],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,]]
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