On November 30, Petrov Company has $127,000 of accounts receivable and uses the perpetual inventory system. December 4 Sold $7,810 of merchandise (that had cost $4,998) to customers on credit, terms n/30. December 9 Sold $17,780 of accounts receivable to Main Bank. Main charges a 6% factoring fee. December 17 Received $4,296 cash from customers in payment on their accounts. December 27 Borrowed $10,160 cash from Main Bank, pledging $13,208 of accounts receivable as security for the loan.

(1) Prepare journal entries to record the above transactions.

(2) Which transaction would most likely require a note to the financial statements?