Sheridan Incorporated factored $160,400 of accounts receivable with Engram Factors Inc. on a with recourse basis....

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Sheridan Incorporated factored $160,400 of accounts receivable with Engram Factors Inc. on a with recourse basis. Engram 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 Sheridan to record the sale, assuming that the recourse liability has a fair value of $7,260. (If no entry is required, select "No Entry" for the account titles and enter O 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.) Account Titles and Explanation Debit Credit Sheridan Inc. factors receivables with a carrying amount of $240,500 to Joffrey Company for $161,800 on a with recourse basis. The recourse provision has a fair value of $1,980. This transaction should be recorded as a sale. Prepare the appropriate journal entry to record this transaction on the books of Sheridan Inc. (If no entry is required, select "No Entry" for the account titles and enter O 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.) Account Titles and Explanation Debit Credit Skysong Corporation factors $271,500 of accounts receivable with Kathleen Battle Financing, Inc. on a with recourse basis. Kathleen Battle Financing will collect the receivables. The receivables records are transferred to Kathleen Battle Financing on August 15, 2025. Kathleen Battle Financing assesses a finance charge of 2% of the amount of accounts receivable and also reserves an amount equal to 4% of accounts receivable to cover probable adjustments. (b) Assume that the conditions are met for a transfer of receivables with recourse to be accounted for as a sale. Prepare the journal entry on August 15, 2025, for Skysong to record the sale of receivables, assuming the recourse obligation has a fair value of $3,170. (If no entry is required, select "No Entry" for the account titles and enter O 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.) Date Account Titles and Explanation Aug. 15, 2025 Debit Credit Sheridan Incorporated factored $160,400 of accounts receivable with Engram Factors Inc. on a with recourse basis. Engram 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 Sheridan to record the sale, assuming that the recourse liability has a fair value of $7,260. (If no entry is required, select "No Entry" for the account titles and enter O 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.) Account Titles and Explanation Debit Credit Sheridan Inc. factors receivables with a carrying amount of $240,500 to Joffrey Company for $161,800 on a with recourse basis. The recourse provision has a fair value of $1,980. This transaction should be recorded as a sale. Prepare the appropriate journal entry to record this transaction on the books of Sheridan Inc. (If no entry is required, select "No Entry" for the account titles and enter O 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.) Account Titles and Explanation Debit Credit Skysong Corporation factors $271,500 of accounts receivable with Kathleen Battle Financing, Inc. on a with recourse basis. Kathleen Battle Financing will collect the receivables. The receivables records are transferred to Kathleen Battle Financing on August 15, 2025. Kathleen Battle Financing assesses a finance charge of 2% of the amount of accounts receivable and also reserves an amount equal to 4% of accounts receivable to cover probable adjustments. (b) Assume that the conditions are met for a transfer of receivables with recourse to be accounted for as a sale. Prepare the journal entry on August 15, 2025, for Skysong to record the sale of receivables, assuming the recourse obligation has a fair value of $3,170. (If no entry is required, select "No Entry" for the account titles and enter O 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.) Date Account Titles and Explanation Aug. 15, 2025 Debit Credit