Kendall Corporation designs and manufactures sports cars. During the course of its business, Kendall generates substantial receivables from its customers. On July 1, 20X1, to improve its cash flow, Kendall establishes a securitization entity (SE) and (7) transfers without recourse $20.5 milion of its recelvables to the SE and (2) surrenders control over these receivables. The SE then sells securities backed by the cash flows associated with Kendall's receivabies. Because the SE is separate from Kendall, and the recelvables are diversified across hundireds of customers, investors are wiling to pay $24 million for the securities. The SE then transfers the $24 million to Kendall Corporation Required: 1. Prepare Kendalis entry to record the securitization as a sale. 2. Show how your answer to requirement 1 would change if control over the receivables is not surrendered at the time of the transfer (Le, an agreement exists whereby Kendall would be forced to absorb significant losses associated with the SE's recelvables). Complete this question by entering your answers in the tabs below. Prepare Kendalis entry to record the secunitization as a sale, (If no entry is required for a particular transaction, select "No journal entry required in the firat account field, Enter your answers in dollars, not in million dollars.) Journal entry worksheet Inge? tirer geDus Dorote erechits. Show how your answer to requirement 1 would change if control over the receivables is not surrendered at the time of the transfer (i.e., an agreement exists whereby Kendall would be forced to absorb significant losses associated with the SE's receivables). (If no entry is required for a particular transaction, select "No'journal entry required" in the first account field. Enter your answers in dollars, not in milion dollars.) Journal entry worksheet Record the entry if control over the receivables is not surrendered, Notei linter detus bedore crevits