On May 1, Rengo, Inc. factored $3,200,000 of accounts receivable with Speed Finance on a without recourse basis. Under the arrangement, Rengo was to handle disputes concerning service, and Speed Finance was to make the collections, handle t the sales discounts, and absorb the credit losses. Speed Finance assessed a finance charge of 8% of the total accounts receivable factored and retained an amount equal to 4% of the total receivables to cover sales discounts. Instructions (a) Prepare the journal entry required on Rengo's books on May 1. (b) Prepare the journal entry required on Speed Finance's books on May 1. (c) Assume Rengo factors the $3,200,000 of accounts receivable with Speed Finance on a with recourse basis instead. The recourse provision has a fair value of $40,000. Prepare the journal entry required on Rengo's books on May 1