12 of 12 Question 12 Seve Apar points On July 1, Star Company factored $600,000 of accounts receivable with Pren Fianoeing on a without recourse basis Under the regent, Pet Finsoring was to mice the collections Badle the sales discounts, and absorb the credit losses. Prett Financing assessed a Soance charge of 7% of the total accounts receivable factored and retained an out equal to 2% of the total receivables so cover sales docos Required: a. Prepare the journal entry required on Prett Financing on July 1 b. Assume Star Company factors the S600,000 of accounts receivable with Prett Financing on a with recourse basis. Prepare the jounal entry required on Star company's book on July 1. For the roolbar, press ALT+F10 (PC) or ALT+FN+F10)