12.A company assigns $3,000,000 of its accounts receivables as collateral for a $1 million 8% loan with a bank. The company. also pays a finance fee of 1% on the transaction at the time of the receipt of the loan proceeds. Prepare the journal entry (in T-account format) to recognize the assignment of accounts receivable, the receipt of the loan proceeds, and the payment of the finance fee.

12.A company factors $2,000,000 of its accounts receivables with recourse for a finance charge of 4%. The finance company retains an amount equal to 8% of the accounts receivable for possible adjustments. Management of the company estimates the fair value of the recourse liability at $200,000. Prepare the journal entry(ies) (in T-account format) to recognize this scenario.