Use the information in BE7-11 for Wood Incorporated. Assume that the receivables are sold with recourse (guarantee). Prepare the journal entry for Wood to record the sale.

Data From BE7-11

Wood Incorporated factored €150,000 of accounts receivable with Engram Factors Inc., without guarantee of credit loss. Engram assesses a 2% 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 Incorporated and Engram Factors to record the factoring of the accounts receivable to Engram.