QUESTION 1 12 points Save Answer Part A On May 1. Carter, Inc. factored 5800,000 of accounts receivable with Fax Finance on a without recourse basis. Fax Finance remitted 90% of the total factored accounts receivable to Carter, Inc. and retained 10% When Fax Finance collects the receivables, It will remitto Carter. In the retained amountless a 21 (2% of a total factor amount) Carter, Inc estimates that the fair value of the retained amount is 566,000 Required. Prepare the joumal entry required on Carter's books on May 1 to record the sale of receivables Answer: Account Amounts DAN Crede May 1 Part B: Assume the same facts as in Part A above, except that Carter, Inc factored the receivable with recourse and estimated the recourse obligation to be $14.000 Required: Prepare the journal entry required on Carter's books on May 1 to record the sale of receivables Answer: Date Accounts Amounts Debit Credit May 1 Part: Required. Prepare journal entry for Max Company for Max Company assigned accounts receivable in the amount of $500,000 to Rapid Finance Company as security colateral) for a loan of $425,000 and signed a note. Rapid charged a 3% commission on the accounts receivable, the Interest rate on the note is 125 Answer: Date Accounts Amounts Det Crede