Needham Corporation has a $$200,000$ balloon mortgage payment due in early August. To meet its obligation, it decided on August $1$ to accelerate collection of accounts receivable by assigning $$260,000$ of specified accounts to a commercial lender as collateral for a loan. Under the agreement, Needham guarantees the accounts and will notify its customers to make their payments directly to the lender. In return, the lender advances to Needham $85\%$ of the accounts assigned. The remaining $15\%$ will be paid to Needham once the commercial lender has recovered its fees and related cash advances. The lender receives a fee of $5\%$ of the total accounts assigned, which is immediately deducted from the initial cash advance. The lender also assesses a monthly finance charge of one$-$half of $1\%$ on any uncollected balances. Finance charges are to be deducted from the first payment due Needham after the lender has recovered its cash advances. On August $31,$ Needham received a statement from the lender saying it had collected $$160,000.$ On September $30,$ Needham received a check from the lender with a second statement saying it has collected an additional $$80,000.$

Required:

Prepare all necessary journal entries made by Needham.

Show the balance sheet presentation of the assigned accounts receivable and any related liabilities at August $31.$

Prepare all necessary journal entries made by Needham assuming these changes in the given scenario:

The transaction qualifies under U$.$S$.$ GAAP as a sale with recourse.

The assessed monthly finance charge increases the Loss on sale of receivables account and is offset by a credit to Due from factor.

Although Needham has guaranteed the transferred accounts, their high quality makes nonpayment unlikely.