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Pronghorn Financial Services has agreed to purchase $520,000 of Culver Corporation's outstanding accounts receivable, with...

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Accounting

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Pronghorn Financial Services has agreed to purchase $520,000 of Culver Corporation's outstanding accounts receivable, with recourse. Culver's controller estimates that the fair value of the uncollectible accounts is $83,200. Pronghorn will charge Culver 10% of the total receivables balance as a financing fee, and will withhold an initial amount of 20%. Calculate the net proceeds and the gain or loss on the disposal of receivables to Pronghorn. Net proceeds $ on disposal of receivables $ Prepare Culver's journal entry to record the sale. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit

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