Presented below is information for Domino, Inc. for $2022$ :

Beginning$-$of$-$the$-$year Accounts Receivable balance was $$157,000.$

Net sales for the year were $$1,550,000.$$$100,000$ of the sales were cash sales. Domino

does not offer cash discounts for early payment.

Collections on accounts receivable during the year were $$1,392,000.$

Domino plans to factor accounts receivable totaling $$70,000$ at the end of the year.

Domino will transfer the accounts to Jerome Factors, Inc. with recourse. Jerome Factors

will retain $4\%$ of the balances for probable adjustments and assesses a finance charge of

$6\%.$

Instructions

a$)$ Prepare the journal entry to record the transfer of the receivables with recourse.

b$)$ Compute Domino's accounts receivable turnover for the year under two scenarios. In the

first scenario, assume the receivables are sold as described above. In the second scenario,

assume Domino factors the receivables without recourses. Round your results for

accounts receivable turnover to two decimals.

a$)$