A. (5 points) On May 1, Rex factored $140,000 of accounts receivable with Steady Finance on a with recourse basis. Steady assessed a finance charge of $5,000 of the total accounts receivable and retained $3,000 for possible sales returns. Rex estimated a $7,500 recourse provision. Between May 1 and July 31, Rexs customers returned merchandise on $2,400 of credit sales within the pool of receivables factored. Steady collected $131,000 of the $140,000 of accounts receivable factored. On August 1, Rex and Steady settle up what Rex owes Steady OR what Steady owes Rex. Prepare the entries Rex should make on May 1 AND August 1.