Problem IV (10 points) Estimated time to complete -15 minutes In March of 2018, the Santa Teresa Glass company factored accounts receivable that had a book value of $700,000 to factor Bank. The transfer was made without recourse. Under the arrangement, Santa eresa Glass Company transfers the $700,000 of receivables to Factor, and Factor immediately remits to nta Teresa Glass Company cash equal to 85% of the amount factored amount. Factor retains the 15% to cover its factoring fee of 5% of the factored amount and to provide a cushion against potential ales and allowances. After Factor has collected cash equal to the amount advanced to Santa Teresa returns plus their factoring fee, Factor provides Santa Teresa with cash equal to the fair value of the last 15% of the receivables to be collected (which management estimates to equal $80,000) less the 5% factoring fee. Factor will be p Factor remits the excess to Santa Teresa. Therefore, under the arrangement up-front and a "beneficial interest" in the transferred receivable aid upfront but from amounts% retained Required Prepare the general journal entry to record the transfer of receivables to Factor. 1