DRB, Inc. enters into an arrangement with Genius Enterprises whereby Genius will purchase $ 100,000 of DRB’s receivables and charge a 6% fee. As part of the agreement, Genius will hold back $ 9,000 as additional security. DRB sold the receivable with recourse, and the estimated recourse liability is $ 3,000.
Prepare the journal entry to record the agreement assuming that the transaction qualifies as a sale for DRB.