Opal Co. Ltd. transfers $400,000 of its accounts receivable to an independent trust in a securitization transaction on July 11, 2015, receiving 95% of the receivables balance as proceeds. Opal will continue to manage the customer accounts, including their collection. Opal estimates this obligation has a liability value of $14,000. In addition, the agreement includes a recourse provision with an estimated value of $12,000. The transaction is to be recorded as a sale.

Required: Prepare the journal entry on July 11, 2015, for Opal Co. Ltd. to record the securitization of the receivables, assuming it follows ASPE.

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