Problem 12. Factoring of Accounts Receivable Witches Brew Coffee, Inc. factors $500,000 of accounts receivable with Frost Bank Factoring on a without recourse basis. Witches Brew transfers the receivable records to Frost, which will receive the collections. Frost assesses a finance charge (fee) of 3% of the amount of accounts receivable and retains an amount equal to 5% of the accounts receivable for probable adjustments. Required: Write the journal entry to recognize the factoring of these accounts receivable. (do use commas, do not use $, mark credit amounts with or 0) Debit Cash Account Credit Loss on sale ofreceivables