Mountain High Ice Cream Company transferred $60,000 of accounts receivable to the Prudential Bank. The transfer was made with recourse. Prudential remits a portion of the factored amount to Mountain High and retains $5,000 to cover probable adjustments. When the bank collects the receivables, it will remit to Mountain High the retained amount. Mountain High anticipates a $3,000 recourse obligation. The bank charges a $2,200 fee, 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. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Record the transfer of accounts receivable. Note: Enter debits before credits. Debit Credit Event 1 5,000 General Journal Cash Receivable from factor Loss on sale of receivables Recourse liability Accounts receivable 3,000 60,000 Record entry Clear entry View general journal