E7-15B (Transfer of Receivables with Recourse) Strassner Corporation factors $26

E7-15B (Transfer of Receivables with Recourse) Strassner Corporation factors $262500 of accounts receivable with Sultanali Financing Inc. on a with recourse basis. Sultanali Financing will collect the receivables. The receivables records are transferred to Sultanali Financing on August 15 2014. Sultanali Financing assesses a finance charge of 3% of the amount of accounts receivable and also reserves an amount equal to 5% of accounts receivable to cover probable adjustments.Instructions(a) What conditions must be met for a transfer of receivables with recourse to be accounted for as a sale?(b) Assume the conditions from part (a) are met. Prepare the journal entry on August 15 2014 for Strassner to record the sale of receivables assuming the recourse obligation has a fair value of$3000.