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Carla Vista Co. sells $647,600 of receivables with a fair value of $659,400 to Carla Vista Trust in a securitization transaction that meets the criteria for a sale. Carla Vista Co. receives full fair value for the receivables and agrees to continue to service them, estimating that the fair value of this service liability component is $26,930.

Prepare the journal entry for Carla Vista Co. to record the sale.

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Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
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ISBN: 9781337788281
Author: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher: Cengage Learning
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