What is the journal entry to record the sale

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Reference no: EM131268397

Monster Trucks factored $600,000 of accounts receivable to Little Cars on October 1, 2015. Control was surrendered by Monster Trucks. Little Cars accepted the receivables subject to recourse for nonpayment, assesses a fee of 3% of total accounts receivable, and retains a holdback equal to 2% of the total accounts receivable factored. The fair value of the recourse obligation is $9,000. What is the journal entry to record the sale of Monster Truck’s accounts receivable?

Reference no: EM131268397

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