On June $30,2024,$ Blondie Fixtures was considering alternatives to bolster its cash position. Option One called for transferring $$430,000$ in accounts receivable to Dogwood Finance Company without recourse for a $5\%$ fee. Option Two calls for Blondie to transfer the $$430,000$ in receivables to Dogwood with recourse. Dogwood's charges a $4\%$ fee for receivables factored with recourse. Option Two meets the conditions to be considered a sale, but Blondie estimates a $$3,300$ recourse liability. Under either option, Dogwood will immediately remit $90\%$ of the factored receivables to Blondie, and retain $10\%.$ When Dogwood collects the remaining receivables, it remits the amount, less the fee, to Blondie. Blondie estimates that the fair value of the final $10\%$ of the receivables is $$26,500($ignoring the factoring fee$).$

Required:

Prepare any necessary journal entry or entries if receivables are factored under Option One.

Prepare any necessary journal entry or entries if receivables are factored under Option Two.

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Prepare any necessary journal entry or entries if receivables are factored under option One.

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

Journal entry worksheet

$1$

Record the entry if receivables are factored under option one.