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Factoring (Version 1] on April 1, Morocco Ltd. factored $500,000 of accounts receivable with Kenya...

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Factoring (Version 1] on April 1, Morocco Ltd. factored $500,000 of accounts receivable with Kenya Finance Corp. on a without recourse basis. Under the arrangement, Morocco was to handle disputes concerning service, and Kenya Finance was to make the collections, handle the sales discounts, and absorb the credit losses. Kenya Finance assessed a finance charge of 5% of the total accounts receivable factored and retained an amount equal to 2% of the total recevables to cover sales discounts. Both Morocco Ltd. and Kerry inance Corp. follow ASPE. Instructions a) Prepare the journal entry required on Morocco's books on April 1. (3 marks) b) Prepare the journal entry required on Kenya Finance's books on April 1. (3 marks) c) Instead, assume Morocco factors the $500,000 of accounts receivable with Kenya Finance on a with recourse basis. The recourse provision has a fair value of $12,000. Prepare the journal entry required on Morocco's books on April 1

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