A On February $1,$ Alby Corp. transferred its accounts receivable to Factors, Inc. without recourse.

Factors, Inc. remits $90\%$ of the amount factored to Alby and keeps $10\%$ to cover sales returns

and allowances.

When Factors, Inc. collects the receivables, it will remit the retained amount less a fee.

Prepare Alby Corp's journal entry to record the transfer assuming that the sale criteria are met.

B On February $1,$ Alby Corp. transferred its accounts receivable to Factors, Inc. with recourse.

Factors, Inc. remits $90\%$ of the amount factored to Alby and keeps $10\%$ to cover sales returns

and allowances.

When Factors, Inc. collects the receivables, it will remit the retained amount less a fee.

Prepare Alby Corp's journal entry to record the transfer assuming that the sale criteria are met.

A

Date

Account Title

Debit

Credit

B

Date

Account Title

Debit

Credit