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Martinez Corp. factors $705,000 of accounts receivable with Tamarisk, Inc., Inc. on a with recourse basis....

Martinez Corp. factors $705,000 of accounts receivable with Tamarisk, Inc., Inc. on a with recourse basis. Tamarisk, Inc. will collect the receivables. The receivable records are transferred to Tamarisk, Inc. on August 15, 2020. Tamarisk, Inc. assesses a finance charge of 2.0% of the amount of accounts receivable and also reserves an amount equal to 5.00% of accounts receivable to cover probable adjustments. Martinez prepares financial statements under ASPE. Assume the conditions for to be recorded as a sale are met. Prepare the journal entry on August 15, 2020, for Martinez to record the sale of receivables, assuming the recourse obligation has a fair value of $7,100. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

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