Prepare the journal entry required on lakelands


Lakeland Inc. factors $950,000 of Its accounts receivables with Greedy Finance on a with recourse basis for a finance charge of 4.0%. The finance company retains an amount equal to 5% of the accounts receivable for possible adjustments. The fair value of the recourse liability is estimated at $25,000. Prepare the journal entry required on Lakeland's books.

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Financial Management: Prepare the journal entry required on lakelands
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