Please answer these two questions and provide the steps

7. Oliver Co. is trying to get financing from National Bank by factoring its accounts receivable. The contract is for $500,000 with resource obligation of 5% of accounts receivable. National Bank assessed a finance charge of 10% but also retained 8% of accounts receivable. The loss on the sale of the accounts receivable for Oliver Co. is closest to: a) $25,000. b) $40,000. 0) $50,000. d) None of the above. 8. Continuing with Oliver 00., suppose National Bank informed Oliver Co. after one year that 7% of accounts receivable turned out to be uncollectible. The most appropriate journal entry to recognize this transaction is: a) Debit recourse liability and cash of $10,000. b) Debit recourse liability of $35,000, credit cash of $10,000 and credit gain on adjustment in resource of $25,000. 0) Debit recourse liability of $25,000, debit loss on adjustment in recourse of $10,000 and credit cash of $35,000. d) Debit cash of $25,000, debit loss on adjustment in recourse of $10,000 and credit recourse liability of $35,000