On April 1, ABBA Ltd. factored $500,000 of accounts receivable with Kenya Finance Corp. on a without recourse basis. Under the arrangement, ABBA was to handle disputes concerning service, and Kenya Finance was to make the collections, handle the sales discounts, and absorb the credit losses. Kenya Finance assessed a finance charge of 5% of the total accounts receivable factored, and retained an amount equal to 4% of the total receivables to cover sales returns and discounts. Required: a. Prepare the journal entry required on ABBA's books on April 1. Prepare the journal entry required on Kenya Finance's books on April 1. b. C. Assume that on the settlement date of June 1, sales returns totaled $8,000 and sales discounts were $2,000. Assume no bad debts. Prepare the following journal entries: i. ABBA's entry to record the returns and allowances ii. Kenya Finance Corp.'s entries for collection of the receivables and final payment to ABBA