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Sheffield Incorporated factored $124,300 of accounts receivable with Tamarisk Factors Inc. on a without-recourse basis....

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Accounting

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Sheffield Incorporated factored $124,300 of accounts receivable with Tamarisk Factors Inc. on a without-recourse basis. Tamarisk assesses a 2% finance charge of the amount of accounts receivable and retains an amount equal to 5% of accounts receivable for possible adjustments. Prepare the journal entry for Sheffield Incorporated and Tamarisk Factors to record the factoring of the accounts receivable to Tamarisk. (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.)

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