Save and Cack Submit to complete this assessment Question 12 Question 12 of 12 points On July 1, Star Company factored $900,000 of accounts receivable with Prett Financing on a without recourse basis. Under the arrangement, Prett Financing was to make the collections, handle the sales discounts, and absorb the credit losses. Prett Financing assessed a finance charge of 5% of the total accounts receivable factored and retained an amount equal to 3% of the total receivables to cover sales discounts Required: a. Prepare the journal entry required on Prett Financing on July 1. b. Assume Star Company factors the $900,000 of accounts receivable with Prett Financing on a with recourse basis. Prepare the journal entry required on Star company's book on July 1. For the toolbar, press ALT+F10 (PC) or ALT+FN-F10 (Mac) BIVS Paragraph Arial 10pt A F = 3 B BE (1) G WORDS POWERED BY TINY