Brief Exercise $7-19($Algo$)$ Factoring of accounts receivable; financial statement effects $[$LO$7-8]$

Logitech Corporation transferred $$120,000$ of accounts receivable to a local bank. The transfer was made without recourse. The local bank remits $85\%$ of the factored amount to Logitech and retains the remaining $15\%.$ When the bank collects the receivables, it will remit to Logitech the retained amount less a fee equal to $3\%$ of the total amount factored. Logitech estimates a fair value of its $15\%$ interest in the receivables of $$13,000($not including the $3\%$ fee$).$

What is the effect of this transaction on the company$$s assets, liabilities, and income before income taxes?