Current Attempt in Progress

Marigold Incorporated factored $$150,700$ 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 $7\%$ of accounts receivable for possible adjustments.

Prepare the journal entry for Marigold to record the sale, assuming that the recourse liability has a fair value of $$7,680.($If no entry is required, select $"$No Entry" for the account titles and enter $0$ 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

cash

Due from Factor

Loss on Sale of Receivables

Accounts Receivable