Answer:
The journal entry is given below.
Explanation:
Journal entry.
Aug.15 2020 Cash A/c Dr $260,286
Reserve amount A/c Dr $11,076
Loss on sale A/c Dr $9,058
To Recourse obligation A/c $3,520
To Accounts receivable A/c $276,900
Computation are as follows:
Accounts Receivable = $276,900
Finance charges = $276,900 × 2% = $5,538
Reserve amount = $276,900 × 4% = $11,076
Recourse obligation=$3,520
Loss on sale = Finance charges + Recourse obligation = $9,058
Cash proceeds = Accounts Receivable - Finance charges - Reserve amount = $260,286
