On September 1 , Global Company factored $ 800,000 of accounts receivable with Marks Financing on a without recourse basis . Under the arrangement , Marks Financing was to make the collections , handle the sales discounts , and absorb the credit losses . Marks Financing assessed a finance charge of 6 % of the total accounts receivable factored and retained an amount equal to 3 % of the total receivables to cover sales discounts . Required : a . Prepare the journal entry required on Marks Financing on September 1 . b . Assume Global Company factors the $ 800,000 of accounts receivable with Marks Financing on a with recourse basis . Prepare the journal entry required on Global company's book on September 1