Mountain High Ice Cream Company transferred $60,000 of accounts receivable to the Prudential Bank. The transfer was madewithout recourse. Prudential remits 90% of the factored amount to Mountain High and retains 10%. When the bank collects the receivables, it will remit to Mountain High the retained amount (which Mountain estimates has a fair value of $5,000) less a 2% fee (2% of the total factored amount).

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.)