Mountain high ice cream company transferred $79,000 of accounts receivable to the prudential bank. the transfer was made with recourse. prudential remits 90% of the factored amount to mountain high and retains 10% to cover sales returns and allowances. when the bank collects the receivables, it will remit to mountain high the retained amount (which mountain estimates has a fair value of $6,900). mountain high anticipates a $4,900 recourse obligation. the bank charges a 3% fee (3% of $79,000), 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 mountain high assuming that the sale criteria are met.