1. On July 15, 2021, Tiny Tiger Corporation factored its accounts receivable with Ferocious 11 marks Lion Inc. on a with-recourse basis. The receivables are transferred to Ferocious Lion, which takes over full responsibility for collections. Other information pertaining to the factoring arrangement follows: Amount of accounts receivable sold by Tiny Tiger to Ferocious Lion Inc. Finance fee charged by Ferocious Lion Inc. as percentage of receivables Percentage withheld from the accounts receivable proceeds for sales returns and allowances $ 403,906 4% 5% Tiny Tiger's estimated cost of paying receivables that debtors fail to pay $ 7,541 Tiny Tiger Corporation and Ferocious Lion Inc. both follow ASPE. Required: 1. Prepare the journal entry required by Tiny Tiger Corporation to account for the sale of its receivables to Ferocious Lion Inc. (4 marks) 2. Prepare the journal entry required by Ferocious Lion Inc. to account for its purchase of the receivables of Tiny Tiger Corporation. (2 marks) 3. Assume that instead of selling the receivables, Tiny Tiger Corporation uses the receivables as security to obtain a loan from Ferocious Lion Inc. Details regarding the transaction follow: Amount of the loan Finance fee charged on the loan amount by Ferocious Lion Interest rate charged on the loan From July 16, 2021 to August 15, 2021, Tiny Tiger Corporation collected the following amount of its outstanding accounts receivable $ 323,125 5% 6% $ 141,367 Prepare journal entries for each of the following items for Tiny Tiger Corporation: Receipt of the loan proceeds on July 15, 2021. (1.5 marks) (a) (b) (c) Collection of receivables from July 16, 2021 to August 15, 2021. (0.5 marks) Remittance of the collected receivables plus interest to Ferocious Lion Inc. on August 15, 2021. (3 marks)