Question: show answer Question #2 a. Arena Industries, Inc. sells ( factors) $1, 225, 900 of Accounts Receivables with the Rapid Cash Finance Company on a

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Question #2 a. Arena Industries, Inc. sells ( factors) $1, 225, 900 of Accounts Receivables with the Rapid Cash Finance Company on a without recourse basis. Rapid Cash Finance acquires the receivables on January 31, 2020 assessing a finance change of 5%, and also reserving 8% for covering probable adjustments. Based on the contractual arrangement above, prepare the journal entry at January 31st for Arena Industries, Inc. b. Walnut Creek Auto Supply Sells (factors) $400, 000 of Accounts Receivables with the Past Preddie's Finance Company on a with recourse basis. Fast Freddie Finance acquires the receivables on March 31, 2020 assessing a finance charge of 34, and also reserving 18 for covering picbable adjustments. The recourse obligation has a fair value of $9 000. Based on the contractitall arrangement above, prepare the journal entry at. March 319: for walnut Creek Auto Supply

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