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Question - Bonita Woodcrafters sells $224,200 of receivables to Commercial Factors, Inc. on a with recourse basis. Commercial assesses a finance charge of 7% and retains an amount equal to 6% of accounts receivable. Bonita estimates that the recourse liability has a fair value of $4,870 instead of $9,740 estimated earlier.
Prepare the journal entry for Bonita to record the sale.
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