In December 2020, Joe's Company, engaged into a factoring arrangement with Gaba's Bank (factor), where Joe transferred accounts receivable that had a book value of $400,000. The transfer was made with recourse. In return, Gaba remitted to Joe cash equal to 85% of the factored amount. Gaba retained the remaining 15% to cover its factoring fee of 3% of the factored amount and to provide a cushion against potential sales returns and allowances. After Gaba has collected cash equal to the amount advanced to Joe plus the factoring fee, Gaba will remit the excess to Joe. Therefore, Joe has a beneficial interest in the transferred receivables equal to the fair value of the last 15% of the receivables to be collected, which management estimates to equal $45,000 less the 3% factoring fee. Management estimates the fair value of the recourse obligation to be $4,000. Required: 1. Prepare the journal entry that Joe's Company would need to make to record the transaction Drahlam 2/10 mafut