QUESTION 1 12 points Save Answer Part A On May 1, Carter, Inc factored $800,000 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 remit to Carter, Inc. the retained amountless a 2% fee (2% of a total factor amount). Carter, Inc estimates that the fair value of the retained amount is 566,000 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 EXC 0 Remaining Time: 2 hours, 12 minutes, 49 seconds. Question Completion Status: 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 To Part C: 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 (collateral) for a loan of $425,000 and signed a note. Rapid charged a accounts receivable, the interest rate on the note is 12% Answer: Date Accounts Amounts Dahit Credit Haie Record co A Remaining Time: 2 hours, 12 minutes, 40 seconds. Question Completion Status: Part C: 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 (collateral) 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 12% Answer: Date Accounts Amounts Debit Credit TT T Arial 3 (12pt) T.E.E