Sale of Receivables Without Recourse Sparwood Manufacturing Factored $250,000 of Their

Sale of receivables without recourse Sparwood Manufacturing factored $250,000 of their accounts receivable to General Factor Corp., on a without recourse basis.The receivables are transferred to General Factor, who takes over the full responsibility of collection.General Factor charged a finance charge of 4% of the dollar value of the receivables, and withheld 5% of the receivable value. Instructions
a)Prepare the general journal entry to reflect this transaction on Sparwood's books.
b)Prepare the general journal entry to reflect this transaction on General Factor's books.