The Inder Corporation is experiencing a temporary cash shortage and decides to factor a group of its accounts receivable. The factor accepts $80,000 of Inder’s accounts receivable, remits 90% of the accounts receivable factored, and charges a 16% commission on the gross amount of the factored receivables. During the period, sales returns and allowances on factored accounts amounted to $1,500.

Required
Prepare all the journal entries necessary by Inder to record the preceding information.