r 10000 Answer 0 Answer Answer 1000 Answer 0 Answer Answer 0 Answer 0 b. Factor Note: Record credits in alphabetical order based on the first letter of the account name.

Recording the sale of Accounts Receivable Without Recourse Apparel Inc. manufactures sportswear for retailers and frequently sells its receivables to factors as a means of accelerating cash collections. On December 1, 2020, Apparel Inc. sold $100,000 of its receivables to Factor Bank. The receivables were sold without recourse. The factor charged 8% and held back 5% for sales adjustments. Bad debts estimated on the receivables is $500. Required Record all journal entries related to the sale of accounts receivable for (a) Apparel Inc., and (b) Factor Bank. a. Apparel Inc. Note: Record debits in alphabetical order based on the first letter of the account name. Account Name Dr. Sales Returns 84000 Loss on Sale of Note 10000 0 0 0 Cr. 1000 b. Factor Note: Record credits in alphabetical order based on the first letter of the account name. Account Name Dr. Cr. 0 0 To record purchase of receivables To record estimate of uncollectible accounts