Option 2: Blondie transfers $400,000 in receivables to Dogwood with recourse, and Blondie does not surrender control of the receivables. Dogwood's charges a 1% fee for receivables factored with recourse. Blondie estimates a $4,000 recourse liability. Dogwood immediately remits cash to Blondie equal to 95% of the factored amount, but Dogwood retains the remaining 5% to cover its factoring fee and to provide a cushion against potential sales returns and allowances. Blondie estimates that the fair value of the 5% of the receivables is $16,000 (ignoring the factoring fee). Other information: Immediately before the transfer, Blondie had total liabilities (which comprised entirely of debt) of $500,000 and total shareholders' equity of $1,000,000 7: Provide any necessary journal entries for Option 2 on June 30, 2011