Mountain High Ice Cream Company transferred $$70,000$ of accounts receivable to the Prudential Bank. The transfer was made without recourse. Prudential remits $90\%$ of the factored amount to Mountain High and retains $10\%.$ When the bank collects the receivables, it will remit to Mountain High the retained amount $($which Mountain estimates has a fair value of $$6,000)$ 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.

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

Journal entry worksheet

$1$

Record the transfer of accounts receivable.

Note: Enter debits before credits.

$\backslash$table$[[$Event$,$General Journal,Debit,Credit$],[1,$Cash,,$],[,$Loss on sale of receivables,,$],[,$Receivable from factor,,$],[,$Accounts receivable,,$],[,,,]]$