On June 30, Petrov Co. has $112,600 of accounts receivable.

On June 30, Petrov Co. has $112,600 of accounts receivable.

July		4		Sold $8,475 of merchandise (that had cost $5,424) to customers on credit.
		9		Sold $15,764 of accounts receivable to Main Bank. Main charges a 3% factoring fee.
		17		Received $4,661 cash from customers in payment on their accounts.
		27		Borrowed $9,008 cash from Main Bank, pledging $11,710 of accounts receivable as security for the loan.

Prepare journal entries to record the above selected July transactions. (The company uses the perpetual inventory system.)

July		9		Factoring fee expense = $15,764 × 0.03 = $473
July		27		Note to Financial Statements:
				Accounts receivable in the amount of $11,710 are pledged as security for a $9,008 note payable to Main Bank.

Thank you!