2% the difference will be paid by refunded to Quagmire Show the lournal entry to record l icollectibles prove to be more or less than this transfer of receivables P5-34 Accounts receivable recognition, measurement, and derecognition L.O 5-3) Difficult-15 minutes) Wahlberg Design Partners (WDP) uses the aging method for its accounts receivable. On January I, the balance in the allowance for doubtfl accounts was $25,000. For the year, WDP ade $2,560,000 of credit sales, wrote off $50,000 of accounts as uncollectible, and $850,000 remained outstanding at year-end. The following table is the aging schedule for these receivables Days outstanding from invoice date 0-30 days 31-90 days >90 days $600,000 Total Balance outstanding, December 31 Estimated default rate During the year, WDP factored $600,000 of its receivables with recourse. The company received $$50,000, net of a holdback of $20,000 for potentially uncollectible accounts. Of the total amount factored, $585,000 was collected, and the factor made a final payment to WDP for $5,000. Required: a. Record the journal entries relating to the factoring transaction. b. Determine the amount of bad debts expense for the year c Show the journal entry to record bad debts expense for the year. d. Show the journal entry that was used to record write-offs for the year