Journal entry to record transaction

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Moon Inc. factors $3,000,000 of its account's receivables without recourse for a finance charge of 4%. The finance company retains an amount equal to 8% of the accounts receivable for possible adjustments. Moon estimates the fair value of the recourse liability at $300,000. What would be the debit to Cash in the journal entry to record this transaction?

Reference no: EM132420551

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