Question: Using the information provided in BE 9- 17, prepare the journal entry to record Nicks Incorporateds sale of accounts receivable to FF, assuming that the

Using the information provided in BE 9- 17, prepare the journal entry to record Nicks Incorporated’s sale of to FF, assuming that the receivables are factored with recourse and can be reported as a sale. The estimated recourse liability is $ 75,500.
In BE 9- 17
Nicks Incorporated sells $ 2,450,000 of its to Fairfield Factors (FF) without recourse. FF charges a fee equal to 7% of the receivables factored and holds back an additional 4% as security. FF will return the hold back to Nicks when the receivables are collected. Assuming a sale, prepare the journal entry to record Nicks Incorporated’s sale of the to FF.

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