Arness Woodcrafters sells $203,200 of receivables to Commercial Factors, Inc. on a with recourse basis.

Arness Woodcrafters sells $203,200 of receivables to Commercial Factors, Inc. on a with recourse basis. Commercial assesses a finance charge of 6% and retains an amount equal to 5% of accounts receivable. Arness estimates the fair value of the recourse liability to be $8,460.

Prepare the journal entry for Arness to record the sale.