Exercise 7-21 Presented below is information for Teal Company. 1. Beginning-of-the-year Accounts Receivable balance was $18,500. 2. Net sales (all on account) for the year were $110,700. Teal does not offer cash discounts. 3. Collections on accounts receivable during the year were $84,500. Teal is planning to factor some accounts receivable at the end of the year. Accounts totaling $13,700 will be transferred to Credit Factors, Inc. with recourse. Credit Factors will retain 5% of the balances for probable adjustments and assesses a finance charge of 4%. The fair value of the recourse obligation is $1,049. Prepare the journal entry to record the sale of the receivables. (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.) Debit Credit Account Titles and Explanation