Q12 urgent

Question 12 8 points Save Answer On July 1, Star Company factored $600.000 of accounts receivable with Prett Financing on a without recourse basis. Under the arrangement, Prett Financing was to make the collections, handle the sales discounts, and absorb the credit losses. Prett Financing assessed a finance charge of 7% of the total accounts receivable factored and retained an amount equal to 2of the total receivables to cover sales discounts Required: a. Prepare the journal entry required on Prett Financing on July 1. b. Assume Star Company factors the $600,000 of accounts receivable with Prett Financing on a with recourse basis. Prepare the journal entry required on Star company's book on July 1. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BI S Paragraph Arial 10pt Ev Av I v V iii 30 o A : a ABC X2 X2 STK +] 3 C E x