Mountain High Ice Cream Company reports under IFRS. Mountain High transferred $66,000 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 $5,600). Mountain High anticipates a $3,600 recourse obligation. The bank charges a 3% fee (3% of $66,000), and requires that amount to be paid at the start of the factoring arrangement. Mountain High has transferred control over the receivables, but determines that it still retains substantially all risks and rewards associated with them. Required: Prepare the journal entry to record the transfer on the books of Mountain High, considering whether the sale criteria under IFRS have been met. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.

The accounts available to use are only listed as these, so please try to use accounts in this list.

No journal entry required, Accounts payable, Accounts receivable, Advertising expense, Allowance for uncollectible accounts, Bad debt expense, Cash, Common stock, Cost of goods sold, Delivery expense, Finance charge expense, Gain on sale of investments, Interest receivable, Interest revenue, Inventory, Land Liabilityfinancing arrangement, Miscellaneous expense, Notes payable, Notes receivable, Office supplies expense, Petty cash, Postage expense, Refund liability, Rent expense, Retained earnings, Salaries expense, Salaries payable, Sales returns, Sales revenue, Service revenue, Supplies, Supplies expense, Utilities expense.