Saturn transfers a customer (Mango Inc.'s) accounts receivable of $5,000,000 with recourse to Orange Bank. Orange Bank immediately transfers 95% of the value cash to Saturn and retains the remaining 5% of which 2% is their factoring fee and 3% is a cushion against Mango not paying or any returned products. Saturn estimates that the risk of Mango not paying is 1.5%. Record the journal entry for this transaction.

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Lets break down the transaction into steps 1 Saturn transfers Mango Incs accounts receivable of 5000... View the full answer