Question: answer both points a and b kindly send answer in 30mins Question 11 Question 11 of 125 8 points On July 1, Star Company factored

answer both points a and b kindly send answer in 30mins

Question 11 Question 11 of 125 8 points On July 1, Star Company factored $600,000 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 7% of the total accounts receivable factored and retained an amount equal to 2% 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 $600,000 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)

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