Noname Corporation transferred $100,000 of accounts receivable to a local bank. The local bank remits 85% of the factored amount to Noname and retains the remaining 15%. When the bank collects the receivables, it will remit to Noname the retained amount less a fee equal to 3% of the total amount factored. Noname estimated a fair value of its 15% interest in the receivables of $11,000(not including the 3%).

a. Assuming the transaction was made without recourse, perpare the necessary journal entry to record the transfer.

b. Assume the exchange was made with recourse and the conditions to consider the transaction a sale are present. The recourse liability is estimated to be $3,000. Prepare the necessary journal entry.