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here were going to be looking at sales of receivables and were going to be looking at the difference between a sale with recourse versus a sale without recourse here for these sales our receivable so for our example here were going to have corporation a the seller here is going to sell their accounts receivable here to Bank B the purchaser of these accounts receivable and its going to be for two hundred and fifty thousand dollars so corporation a here is going to accredit or reduce their accounts receivable for two hundred fifty thousand Bank B is going to debit or increase their accounts receivable for two hundred and fifty thousand dollars and Bank B is going to pay out cash two hundred and thirty thousand dollars to a corporation a for these receivables so they would credit or reducer cash account here for two hundred thirty thousand and corporation a would debit or increase their cash account here for two hundred and thirty thousand dollars now you can see theres a difference