larr PLACh $8$

$\frac{0\mathrm{.}13}{{0\mathrm{.}753}^{\text{v}\text{d}\text{o}\text{t}\text{s}}}-=,$vdots

Valuation and Disposition of Accounts Receivable: Disposing of Accounts Receivable $($Sale of Receivables to a Factor$)-$ Knowledge Check

Knowledge Check

On September $1,$ Sandhill Motors sells $$495,000$ of its receivables to Factors Incorporated. Factors Incorporated assess a service charge of $4\%$ of the amount of receivables sold.

Prepare the entry on Sandhill Motors' books to record the sale of the receivables. $($List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually.$)$

$\backslash$table$[[$Date$,$Account Titles and Explanation,Debit,Credit$],[$Sep$.1,,,42],[,,,],[,0,,],[,2,,0]]$

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