Apparel Inc. manufactures sportswear for retailers and frequently sells its receivables to factors as a means of accelerating cash collections. On December 1, Apparel Inc. sold $90,000 of its receivables to Factor Bank. The receivables were sold without recourse. The factor charged 8% and held back 5% for sales adjustments. Bad debts estimated on the receivables is $450. Record all journal entries related to the sale of accounts receivable for (a) Apparel Inc., and (b) Factor Bank. a. Apparel Inc.

	Account Name	Dr.	Cr.
			Answer
			Answer
			Answer
			Answer
	To record sale of receivables.

b. Factor

	Account Name	Dr.	Cr.
			Answer
			Answer
			Answer
			Answer
	To record purchase of receivables.
			Answer
			Answer
	To record estimate of uncollectible accounts.