Oak Company sold $1,200,000 of its accounts receivable to Stone Factors Incorporated. Stone assesses a 6% finance charge of the receivables sold and Stone retains, for possible adjustments, an amount equal to 8% of the receivables sold. Prepare the journal entry Oak should make if:
o The receivables were sold on a without-recourse basis.
o The receivables were sold with recourse and Oak estimates a recourse obligation of $24,000.