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A company transferred $60,000 of accounts receivable to a bank. The transfer was made without...

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Accounting

A company transferred $60,000 of accounts receivable to a bank. The transfer was made without recourse. The bank remits 90% of the factored amount to the company and retains 10%. When the bank collects the receivables, it will remit to the company the retained amount (which the company estimates has a fair value of $5,000) less a 2% fee (2% of the total factored amount).
Required:
Prepare the journal entry to record the transfer on the books of the company assuming that the sale criteria are met.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.

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