On December $15,2023,$ Dutton Furnishings factored $$800,000$ of accounts receivable for proceeds of $$750,000.$ The company recorded the transaction as being without recourse, with $$50,000$ recorded to

interest expense. During the preparation of the financial statements dated December $31,2024,$ staff concluded that the factoring arrangement should have been classified as being with recourse. Additional information about the factoring is as follows:

The factor withheld $$20,000$ for potential uncollectible accounts.

Actual uncollectible accounts amounted to $$25,000$; Dutton paid the additional $$5,000$ to the factor on August $7,2024,$ and recorded this amount as "miscellaneous expense."

Required:

a$.$ Reproduce the incorrect journal entry that was recorded on December $15,2023,$ and on August $7,2024.$

b$.$ Provide the correct journal entries that should have been recorded on December $15,2023,$ and on August $7,2024.$

c$.$ Record any adjusting journal entries necessary to correct the error in Dutton's accounts.