Mountain High Ice Cream Company transferred $74,000 of accounts receivable to the Prudential Bank. The transfer was made with recourse. Prudential remits 90 % of the factored amount to Mountain High and retains 10 % to cover sales returns and allowances. When the bank collects the receivables, it will remit to Mountain High the retained amount (which Mountain estimates has a fair value of $6,400). Mountain High anticipates a $4,400 recourse obligation. The bank charges a 2% fee ( 2 % of $74,000), 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 Credit Debit General Journal Event View general journal Clear entry Record entry Next