Save All Answers Close Window Save and Sub QUESTION 1 12 points Part: 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 Fox Finance collects the receivables, it will remitto 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 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 jumal 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 fan of $425,000 and signed a note Rapid charged a commission on the accounts receive the rest rate on the notis 12% Answer: Date Account Amounts Debia Croat