Instructions Inder Corporation is experiencing a temporary cash shortage and decides to transfer a group of its accounts receivable to Newton Company on March 22 Inder does not normally transfer its receivables. Newton accepts $80,000 of Inder's accounts receivable, remits 80% of the accounts receivable transferred, and charges a 12% commission on the gross amount of the transferred receivables. Title to the receivables is transferred to Newton, and Newton has the right to assign, pledge, or sell the receivables. During the period, sales returns and allowances on transferred accounts amounted to $1,700 Required: 1. Prepare all the journal entries necessary by Inder to record the preceding information assuming the transfer was without recourse, 2. Prepare all the joumal entries necessary by Inder to record the preceding information assuming the transfer was with recourse and the recourse obligation had an estimated fair value of $4,900. 3. Assume that Inder uses IFRS. How would your answers to Requirements 1 and 2 change? Instructions x Chart of Accounts Compan Inc General Ledger s receiv Ind ed to Ne tra ASSETS REVENUE unts am Ne 111 Cash 411 Sales Revenue $1 121 Accounts Receivable 123 Receivable from Factor EXPENSES 500 Cost of Goods Sold 141 Inventory 152 Prepaid Insurance 181 Equipment 198 Accumulated Depreciation 511 Insurance Expense 512 Utilities Expense 521 Salaries Expense 532 Bad Debt Expense 540 Interest Expense 541 Depreciation Expense 559 Miscellaneous Expenses LIABILITIES 211 Accounts Payable 215 Recourse Liability 226 Return Liability 601 Loss from Sale of Receivables Instruc Chart of Accounts General Journal Prepare all the journal entries necessary by Inder to record the given information assuming the transfer was without recourse. PAGE 9 GENERAL JOURNAL DATE ACCOUNT TITLE POST. RER DEBIT CREDIT 1 2 5 Chart of Accounts General Joumal Prepare all the journal entries necessary by Inder to record the given information assuming the transfer was with recourse and the recourse obligation had an estimated fair value of $4,900 PAGE 9 GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF DEBIT CREDIT 1 3 IFRS Assume that Inder uses IFRS. How would your answers to Requirements 1 and 2 change? Which statement is true? The entries necessary by Inder to record the transfer of receivables with and without recourse would be the same under US GAAP and IFRS Under IFRS, the transfer of receivables with and without recourse would be treated as a secured borrowing rather than a sale. The entries under US GAAP and IFRS would be different