Rocking Rockets sells $300,000 of accounts receivable with recourse on February 1, 2023 to Hill Bank. Hill charges 5% as a finance fee (paid at the beginning) and withholds 10% of the accounts receivable for sales returns, allowances, and discounts. Rocking Rockets expects 1% of the accounts receivable balance to be uncollectible (recourse liability).

Prepare the journal entry to record the transfer assuming that the sale criteria are met.

Answer rating: 100% (QA)

To record the transfer of accounts receivable with recourse you would need to ... View the full answer