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On June 30, 2016, Blondie Fixtures was considering alternatives to bolster its cash position. Option One called for transferring $370,000 in accounts receivable to Dogwood

On June 30, 2016, Blondie Fixtures was considering alternatives to bolster its cash position. Option One called for transferring $370,000 in accounts receivable to Dogwood Finance Company without recourse for a 6% fee. Option Two calls for Blondie to transfer the $370,000 in receivables to Dogwood with recourse. Dogwood's charges a 5% fee for receivables factored with recourse. Option Two meets the conditions to be considered a sale, but Blondie estimates a $2,700 recourse liability. Under either option, Dogwood will immediately remit 90% of the factored receivables to Blondie, and retain 10%. When Dogwood collects the remaining receivables, it remits the amount, less the fee, to Blondie. Blondie estimates that the fair value of the final 10% of the receivables is $23,500 (ignoring the factoring fee). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Required:
1.

Prepare any necessary journal entry or entries if receivables are factored under Option One.

2.

Prepare any necessary journal entry or entries if receivables are factored under Option Two.

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