A company transferred $61,000 of accounts receivable to a bank. The transfer was made with recourse. The company remits 90% of the factored amount to the company and retains 10% to cover sales returns and allowances. When the bank collects the receivables, it will remit to the company the retained amount (which the company estimates has a fair value of $5,100 ). The company anticipates a $3,100 recourse obligation. The bank charges a 3% fee (3% of $61,000), and requires that amount to be paid at the start of the factoring arrangement. 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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