018 The Hollywood Lumber Company obtains financing from the Midwest Finance Company by factoring (or discounting) its receivables. During June 2013, the company factored $1,000,000 of accounts receivable to Midwest. The transfer was made without recourse. The factor, Midwest Finance, remits 80% of the fa receivables and retains 20%, when the receivables are collected by Midwest, the retained amount, less a 3% fee (3% of the total factored amount), will be remitted to Hollywood Lumber. Hollywood estimates that the fair value of the amount retained by Midwest is $180,000. ctored In addition, on June 30, 2013, Hollywood discounted a note receivable without recourse. The note, which originated on March 31, 2013, requires the payment of $150,000 plus interest at 8% on March 31, 2014, Midwest's discount rate is 10%. The company's financial year-end is December 31. Required: Prepare journal entries for Hollywood Lumber for the factoring of accounts receivable and the note receivable discounted on June 30. Assume that the required criteria are met and the transfers are accounted for as sales