n une 30, Pena Co. has $125,900 of accounts receivable. Prepare journal entries to record the fl¬ owing selected July transactions. Also prepare any footnotes to the July 31 financial statements that result from these transactions. (The company uses the perpetual inventory system.)

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July 4 Sold $6,295 of merchandise (that had cost $4,000) to customers on credit. 9 Sold $18,000 of accounts receivable to Center Bank. Center charges a 4% factoring fee. 17 Received $3,436 cash from customers in payment on their accounts. 27 Borrowed $10,000 cash from Center Bank, pledging $13,000 of accounts receivable as se- curity for the loan.