On May 1, 2020, Blossom factored accounts receivable of $400,000 to AB Financial. The transfer was made with recourse. Records are transferred to AB Financial who will receive all collections.

AB Financial remits to Blossom 85% of the factored receivables. AB Financial retains 15% to cover its factoring fee (8%), which is paid at the beginning of the contract, and to provide a cushion against potential sales returns, allowances and discounts. Blossom estimates that 4% of the factored accounts receivable will be uncollectible.

On June 19, 2020, Blossom and AB Financial talk and determine that Blossom had sales returns of $18,000. All but $8,500 of the A/R was collected.

Provide the journal entries needed for Blossom on 5/1/2020 to record the sale and entries needed on 6/19/2020

Four journal entries are needed at 6/19/2020