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  3. on december 1,2023, dakane corp. sold (factored) $

On December 1,2023, Dakane Corp. sold (factored) $200,000 of its accounts receivable with Kwan Finance...

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Accounting

On December 1,2023, Dakane Corp. sold (factored) $200,000 of its accounts receivable with Kwan Finance Company. Kwan charges an up-front 6% fee for providing this service and holds back $10,000 of the cash sale price to protect themselves in the event there are sales returns or allowances that reduce the accounts receivable. The sale is made with recourse meaning that Dakane may have to reimburse Kwan for any uncollectible accounts, and Dakane estimates the amount of that possible reimbursement is $3,000.
Required:
Record Dakanes entry for the transfer of the receivables on December 1,2023.

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