Answer:
Dr Cash $257,900
Dr Due from Gannon Factors $17,700
Dr Loss on Sale of Receivables $19,400
Cr Accounts Receivable $295,000
Cr Recourse Liability $13,500
Dr Accounts Receivables $295,000
Cr Due to Customer $17,700
Cr Interest Revenue $5,900
Cr Cash $257,900
Explanation:
Journal entries
Dr Cash $257,900
Dr Due from Gannon Factors $17,700
Dr Loss on Sale of Receivables $19,400
Cr Accounts Receivable $295,000
Cr Recourse Liability $13,500
Dr Accounts Receivables $295,000
Cr Due to Customer $17,700
Cr Interest Revenue $5,900
Cr Cash $257,900
*6% X $295,000 =$17,700
*2% X $295,000 =$5,900 +$13,500=$19,400
