E7-17B (Transfer of Receivables without Recourse) SYKES Corp. factors $100000 of accounts receivable with KTT Finance Corporation on a without recourse basis on July 1 2014. The receivables records are transferred to KTT Finance which will receive the collections. KTT Finance assesses a finance charge of 2% of the amount of ccounts receivable and retains an amount equal to 5% of accounts receivable to cover sales discounts returns and allowances. The transaction is to be recorded as a sale.Instructions(a) Prepare the journal entry on July 1 2014 for SYKES Corp. to record the sale of receivables without recourse.(b) Prepare the journal entry on July 1 2014 for KTT Finance Corporation to record the purchase of receivables without recourse.
