Exercise $7-24($Algo$)$ Factoring of accounts receivable without recourse $[$LO$7-8]$

Mountain High Ice Cream Company transferred $$75,000$ of accounts receivable to the Prudential Bank. The transfer was made without recourse. Prudential remits $90\%$ of the factored amount to Mountain High and retains $10\%.$ When the bank collects the receivables, it will remit to Mountain High the retained amount $($which Mountain estimates has a fair value of $$6,500)$ less a $3\%$ fee $(3\%$ of the total factored amount$).$

Required:

Prepare the journal entry to record the transfer on the books of Mountain High assuming that the sale criteria are met.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Answer is not complete.

$\backslash$table$[[$No$,$Event,General Journal,Debit,Credit$],[1,1,$Cash $(,67,500,],[,,$Loss on sale of receivables,$1,000$ X$,],[,,$Accounts receivable $,,75,000\backslash$times $],[,,$Receivable from factor $,,6,500\backslash$times $]]$