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1. Factoring A/R Midwest Manufacturing sold $230,000 of accounts receivable to Lazard Financing on a with recourse basis on January 10, 20Y4. Lazard assessed a
1. Factoring A/R Midwest Manufacturing sold $230,000 of accounts receivable to Lazard Financing on a with recourse basis on January 10, 20Y4. Lazard assessed a finance charge of 5% and retained an amount equal to 8% of the accounts receivable to cover sales discounts, returns, and allowances. The recourse obligation had an estimated fair value of $13,800 on January 10, 20Y4. Midwest paid Lazard $4,000 for bad debts on January 31, and an additional $4,500 for bad debts at the end of the recourse period on March 31, 20Y4. Lazard collected $130,000 from customers on March 31, 20Y4. Prepare the necessary entries for Midwest and Lazard on January 10th, January 31st, and March 31st Midwest Lazard
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