Answer:
Dr Cash $190,190
Dr Due from Gannon Factors $14,630
Dr Loss on Sale of Receivables $16,280
Cr Accounts Receivable $209,000
Cr Recourse Liability $12,100
Dr Accounts Receivables $209,000
Cr Due to Customer $14,630
Cr Interest Revenue $4,180
Cr Cash $190,190
Explanation:
Journal entries
Dr Cash $190,190
Dr Due from Gannon Factors $14,630
Dr Loss on Sale of Receivables $16,280
Cr Accounts Receivable $209,000
Cr Recourse Liability $12,100
Dr Accounts Receivables $209,000
Cr Due to Customer $14,630
Cr Interest Revenue $4,180
Cr Cash $190,190
*7% X $209,000 =$14,630
*2% X $209,000 =$4,180+$12,100=$16,280
