Mountain High Ice Cream Company transferred $$68,000$ of accounts receivable to the Prudential Bank. The transfer was made with recourse. Prudential remits $90\%$ of the factored amount to Mountain High and retains $10\%$ to cover sales returns and allowances. When the bank collects the receivables, it will remit to Mountain High the retained amount $($which Mountain estimates has a fair value of $$5,800).$ Mountain High anticipates a $$3,800$ recourse obligation. The bank charges a $2\%$ fee $(2\%$ of $$68,000),$ 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.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.