On July 1, Star Company factored $900,000 of accounts receivable with Prett Financing on a without recourse basis. Under the arrangement, Prett Financing a finance charge of 5% of the total accounts receivable factored and retained an amount equal to 3% of the total receivables to cover sales discounts Required: a. Prepare the journal entry required on Prett Financing on July 1. b. Assume Star Company factors the $900,000 of accounts receivable with Prett Financing on a with recourse basis Prepare the journal entry require- For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac) B n Paragraph uestion 6 of 12 8 points Save Answer ment, Prett Financing was to make the collections, handle the sales discounts, and absorb the credit losses Prett Financing assessed Counts journal entry required on Star company's book on July 1