7-20 ctoring accounts evable with ourse 07-8 [This is a variation of E 7-19 modified to focus on factoring with recourse.] Mountain High Ice Cream Company transferred $60,000 of accounts receivable to the Prudential Bank. The trans- fer was made with recourse. Prudential remits 90% of the factored amount to Mountain High and retains 10% to cover sales returns and allowances. When the bank collects the receivables, it will remit to Mountain High the retained amount (which Mountain estimates has a fair value of $5,000). Mountain High anticipates a $3,000 recourse obligation. The bank charges a 2% fee (2% of $60,000), and requires that amount to be paid at the start of the factoring arrangement. Required: Prepare the journal entry to record the transfer on the books of Mountain High assuming that the sale criteria are met