Orman Co.sold $80,000 of accounts receivable to First Savings and incurred a 3% factoring fee.Prepare the journal entry for Orman Co.to record the sale.

Factoring Fee

The cost charged by a third party to a business for providing factoring services—financing based on the business's receivables.

Accounts Receivable

Funds that customers owe to a company for products or services that have been provided but not yet compensated for.

Journal Entry

A record in accounting that logs a transaction and its impact on account balances in debit and credit terms.