Exercise 7-20 Factoring of accounts receivable with recourse [LO7-8) Mountain High Ice Cream Company transferred $64,000 of accounts receivable to the Prudential Bank. The transfer was made with recourse Prudential remits 90% of the factored amount to Mountain High and retains 10% to cover sales returns and allowances when the bank collects the receivables, it will remit to Mountain High the retained amount (which Mountain estimates has a fair value of $5,400) Mountain High anticipates a $3.400 recourse obligation. The bank charges a 2% fee 2% of $64,000), and requires that amount to be paid at the start of the factoring arrangement. Required Prepare the journal entry to record the transfer on the books of Mountain High assuming that the sale criteria are met. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the transfer of accounts recelvable. Note: Enter debits before credits Event General Journal Debit Credit