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Accounting

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Help Save & Ex Saved work mode : This shows wha eark mode: This shows what is correct or incorrect for the work you have completed so fer. it does not Return t Exercise 7-19 Factoring of accounts receivable without recourse [LO7-8] Mountain High Ice Cream Company transferred $70,000 of accounts receivable to the Prudential Bank. The transfer was made recourse. Prudential remits 90% of the factored amount to Mountain High and retains 10%, when the bank collects the recevab will remit to Mountain High the retained amount (which Mountain estimates has a fair value of $6,000) less a 2% fee (2% of the to factored amount). Required: Prepare the journal entry to record the transfer on the books of Mountain High assuming that the sale criteria are met. (If no entry required for a transaction/event, select "No journal entry required" in the first account field.) Answer is complete but not entirely correct. No Event General Journal Debit Credit 63,000 5,600 4,600 Cash Loss on sale of receivables Receivable from factor Accounts receivable 0,000

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