Mountain High Ice Cream Company transferred $ 7 9 , 0 0 0 of accounts receivable to
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Question:
Mountain High Ice Cream Company transferred $ of accounts receivable to the Prudential Bank. The transfer was made with recourse. Prudential remits of the factored amount to Mountain High and retains to cover sales returns and allowances. When the bank collects the receivables, it will remit to Mountain High the retained amount which Mountain estimates has a fair value of $ Mountain High anticipates a $ recourse obligation. The bank charges a fee of $ and requires that amount to be paid at the start of the factoring arrangement.
Required:
Prepare the journal entry to record the transfer on the books of Mountain High assuming that the sale criteria are met. If no entry is required for a transactionevent select No journal entry required" in the first account field.
Posted Date: