New Age Designs Ltd. sold $1,340,000 of its accounts receivable to OBM Bank on a with recourse basis on February 12, 2020. OBM Bank will charge New Age 8% of the total receivables balance as a financing fee, and will withhold an initial amount of 9% for sales returns and allowances. New Age Designs estimates that the fair value of the recourse obligation is $105,000. Both New Age Designs and OBM Bank follow ASPE Required 1. Prepare the journal entry required on the books of New Age Designs Ltd. on February 12, 2020 for the disposal of the receivables. (4 marks) 2. Prepare the journal entry required on the books of OBM Bank on February 12, 2020 for the purchase of the receivables. (2 marks) Halifax Corporation had the following items in its adjusted trial balance at November 30, 2019: Description Debit Credit Accounts receivable $255.000 Allowance for doubtful accounts $10.200 On February 15, 2020, management determined that a $9,000 account owing from Vancouver Architecture Inc. was uncollectible. As a result, management decided to write off the account. April 30, 2020. Vancouver Architecture paid Halifax Corporation $4.500 on the ut the previously written off. New Age Designs Ltd. sold $1,340,000 of its accounts receivable to OBM Bank on a with recourse basis on February 12, 2020. OBM Bank will charge New Age 8% of the total receivables balance as a financing fee, and will withhold an initial amount of 9% for sales returns and allowances. New Age Designs estimates that the fair value of the recourse obligation is $105,000. Both New Age Designs and OBM Bank follow ASPE Required 1. Prepare the journal entry required on the books of New Age Designs Ltd. on February 12, 2020 for the disposal of the receivables. (4 marks) 2. Prepare the journal entry required on the books of OBM Bank on February 12, 2020 for the purchase of the receivables. (2 marks) Halifax Corporation had the following items in its adjusted trial balance at November 30, 2019: Description Debit Credit Accounts receivable $255.000 Allowance for doubtful accounts $10.200 On February 15, 2020, management determined that a $9,000 account owing from Vancouver Architecture Inc. was uncollectible. As a result, management decided to write off the account. April 30, 2020. Vancouver Architecture paid Halifax Corporation $4.500 on the ut the previously written off