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8 points Question 9 On July 1, Star Company factored $600,000 of accounts receivable with Prett Financing on a without recourse basis. Under the arrangement, Prett Financing was to make the collections, handle the sales discounts, and absorb the credit losses. Prett Financing assessed finance charge of 7% of the total accounts receivable factored and retained an amount equal to 2% of the total receivables to cover sales discounts Required: a. Prepare the journal entry required on Prett Financing on July 1. b. Assume Star Company factors the $600,000 of accounts receivable with Prett Financng on a with recourse basis. Prepare th journal entry required on Star company's book on July 1. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). Αν IX 10pt 2 Arial
Moving to another question will save this response. Question 9 On July 1, Star Company factored $600,000 of accounts receivable with Prett Financing on a without recourse basis. Und 7% of the total accounts receivable factored and retained an amount equal to 2% of the total receivables to cover sales discour Required: a. Prepare the journal entry required on Prett Financing on July 1. b. Assume Star Company factors the $600,000 of accounts receivable with Prett Financing on a with recourse E For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). В Igs Paragraph Arial 10pt : v v 2 Y 12 . AB 1. EX En † {3}