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Question 2 el 12 Question 2 8 points On hily 1. Star Company factored $600,000...

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Accounting

Question 2 el 12 Question 2 8 points On hily 1. Star Company factored $600,000 of accounts receivable with Prett Financing on a without recourse basis. Under the arrangement, Prett Financing was to make the collections, bandlenh discounts, and absorb the credit losses. Prett Financing assessed a finance charge of 7% of the total accounts receivable factored and retained an amount equal to 2% of the total receivables to cover sales dco Required: a. Prepare the journal entry required on Prett Financing on July 1. b. Assume Star Company factors the $600,000 of accounts receivable with Prett Financing on a with recourse basis. Prepare the journal entry required on Star company's book on July 1.
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y men without recourse basis Prelt Financing chili Star Company in the facts receivable will Prett Financing with recourse basis y men without recourse basis Prelt Financing chili Star Company in the facts receivable will Prett Financing with recourse basis

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