Exercise 7-24 (Algo) Factoring of accounts receivable with recourse (LO7-8] Mountain High Ice Cream Company transferred $61,000 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 $5,100). Mountain High anticipates a $3,100 recourse obligation. The bank charges a 3% fee (3% of $61,000), 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 receivable. Note: Enter debits before credits. Event General Journal Debit Credit 1 Record entry Clear entry View general journal