b

On November 30, Petrov Company has $127,000 of accounts receivable and uses the perpetual inventory system. Decenber 4 Sold $5,785 of merchandise (that had cost $3,702 ) to customers on credit, terms n/30. December 9 Sold $17,780 of accounts receivable to Main Bank. Main charges a 2s factoring fee. Decenber 17 Received $3,182 cash from customers in payment on their accounts. December 27 Borrowed $10,160 cash from Main Bank, pledging $13,208 of accounts receivable as security for the loan. (1) Prepare journal entries to record the above transactions. (2) Which transaction would most likely require a note to the financial statements