Question: Question 34 (2 points) Artic Inc. is having a hard time collecting its outstanding Accounts Receivables from its customers. Artic Inc. decides to factor

Question 34 (2 points) Artic Inc. is having a hard time collecting

Question 34 (2 points) Artic Inc. is having a hard time collecting its outstanding Accounts Receivables from its customers. Artic Inc. decides to factor $700,000 of its Accounts Receivables to Collection Co. on 1/1/2023. Collection Co. assesses a finance charge of 5.85% of the factored Accounts Receivables, and retains an amount equal to 4.25% of the factored Accounts Receivables for probable adjustments. You may round your answers to the nearest dollar. If the factoring between Artic Inc. and Collection Co. is done with recourse what journal entry would Artic record in relation to the factoring on 1/1/2023? Assume that any recourse obligation is deemed to have a fair market value of $25,000.

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