Novak Financial Services has agreed to purchase $490,000 of Flounder Corporation's outstanding accounts receivable, with recourse. Flounder's controller estimates that the fair value of the...

Novak Financial Services has agreed to purchase $490,000 of Flounder

Corporation's outstanding accounts receivable, with recourse. Flounder's controller estimates that the fair value of the uncollectible accounts is $78,400. Novak will charge Flounder 10% of the total receivables balance as a financing fee, and will withhold an initial amount of 20%. -Calculate the net proceeds and the gain or loss on the sale of receivables to Novak. -Prepare Flounder's journal entry to record the sale.(Wiley problem)