Mountain High Ice Cream Company transferred $67,000 of accounts receivable to the Prudential Bank. The transfer was made without 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 $5,700) less a 3% fee (3% 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.) View transaction list Journal entry worksheet Record the transfer of accounts receivable. Note: Enter debits before credits. General Journal Debit Credit Event 1 Ervin Company uses the allowance method to account for uncollectible accounts receivable. Bad debt expense is established as a percentage of credit sales. For 2021, net credit sales totaled $6,400,000, and the estimated bad debt percentage is 1.40%. No previously written-off accounts receivable were reinstated during 2021. The allowance for uncollectible accounts had a credit balance of $61,000 at the beginning of 2021 and $49,500, after adjusting entries, at the end of 2021. Required: 1. What is bad debt expense for 2021 as a percent of net credit sales? 2. Assume Ervin makes no other adjustment of bad debt expense during 2021. Determine the amount of accounts receivable written off during 2021. 3. If the company uses the direct write-off method, what would bad debt expense be for 2021? 1. Bad debt expense 2. Accounts receivable written off 3. Bad debt expense On June 30, 2021, the High Five Surfboard Company had outstanding accounts receivable of $660,000. On July 1, 2021, the company borrowed $510,000 from the Equitable Finance Corporation and signed a promissory note. Interest at 8% is payable monthly. The company assigned specific receivables totaling $660,000 as collateral for the loan. quitable Finance charges a finance fee equal to 1.5% of the accounts receivable assigned. Required: Prepare the journal entry to record the borrowing on the books of High Five Surfboard. (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 Record the borrowing. Note: Enter debits before credits. Date General Journal Debit Credit July 01, 2021