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ABC Companies sells WITHOUT RESPONSIBILITY $ 5 0 0 , 0 0 0 of its accounts receivable to DEF Bank. ABc transfers its records to

ABC Companies sells WITHOUT RESPONSIBILITY $500,000 of its accounts receivable to
DEF Bank. ABc transfers its records to the Bank who will receive the payments. The bank
will make a bank charge of 3% of the total accounts receivable and will retain 5% of the
accounts receivable for possible adjustments (returns).
Record the entry according to ABC and the entry according to Bank:

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