Splish Incorporated factored $139,800 of accounts receivable with Blossom Factors Inc. on a without-recourse basis. Blossom assesses a 3% finance charge of the amount of accounts receivable and retains an amount equal to 6% of accounts receivable for possible adjustments.
Prepare the journal entry for Wood to record the sale, assuming that the recourse liability has a fair value of $8,340.
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Splish Incorporated factored $139,800 of accounts receivable with Blossom Factors Inc. on a without-...
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