Pimento & Cheese Sandwich Shoppe transferred $80,000 of accounts receivable to the Augusta Bank. The transfer was made with recourse. Augusta remits 80% of the factored amount to Pimento & Cheese and retains 20% to cover sales returns and allowances. When the bank collects the receivables, it will remit to Pimento & Cheese the retained amount (which Pimento & Cheese estimates has a fair value of $12.000). Pimento & Cheese anticipates a $6,000 recourse obligation. The bank charges a 4% fee (4% of $80,000), and requires that amount to be paid at the start of the factoring arrangement. Required: Prepare the journal entries