Mountain High Ice Cream Company transferred $$74,000$ of accounts recelvable to the Prudential Bank. The transfer

was made without recourse. Prudentlal remits $90\%$ of the factored amount to Mountain High and retains $10\%.$ When

the bank collects the recelvables, It will remit to Mountain High the retained amount $($which Mountain estimates has a

falr value of $$6,400)$ less a $2\%$ fee $(2\%$ of the total factored amount$).$

Required:

Prepare the journal entry to record the transfer on the books of Mountaln High assuming that the sale criterla are met.

Note: If no entry Is required for a transaction$/$event$,$ select $"$No journal entry required" In the first account fleld.

Answer is complete but not entirely correct.