Vaughn Corp factors $$440,000$ of accounts receivable with Bramble Finance Corporation on a without recourse basis on July $1,2025.$ The receivables records are transferred to Bramble Finance, which will receive the collections. Bramble Finance assesses a finance charge of $1\mathrm{.}90\%$ of the amount of accounts receivable and retains an amount equal to $6\%$ of accounts receivable to cover sales discounts, returns, and allowances. The transaction is to be recorded as a sale.

$($a$)$

Prepare the journal entry on July $1,2025,$ for Vaughn Corp. to record the sale of receivables without recourse $($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.$)$

Date Account Titles and Explanation

Debit

Credit

July $1.$

$2025$