Mountain High Ice Cream Company transferred $ of accounts receivable to the Prudential Bank. The transfer was made without recourse. Prudential remits of the factored amount to Mountain High and retains When the bank collects the receivables, it will remit to Mountain High the retained amount which Mountain estimates has a fair value of $ less a fee of the total factored amount
Required:
Prepare the journal entry to record the transfer on the books of Mountain High assuming that the sale criteria are met.
Note: If no entry is required for a transactionevent select No journal entry required" in the first account field.
Journal entry worksheet
Record the transfer of accounts receivable.
Note: Enter debits before credits.
tableEventGeneral Journat,Debit,CreditCash,Loss on sale of receivables,Receivable from factor,Accounts receivable,,
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