Explore Westonci.ca, the top Q&A platform where your questions are answered by professionals and enthusiasts alike. Get expert answers to your questions quickly and accurately from our dedicated community of professionals. Get immediate and reliable solutions to your questions from a community of experienced professionals on our platform.

exercise 7-22 (algo) selling and pledging accounts receivable lo c3 on november 30, petrov company has $105,400 of accounts receivable and uses the perpetual inventory system. december 4 sold $7,145 of merchandise (that had cost $4,573) to customers on credit, terms n/30. december 9 sold $14,756 of accounts receivable to main bank. main charges a 6% factoring fee. december 17 received $3,930 cash from customers in payment on their accounts. december 27 borrowed $8,432 cash from main bank, pledging $10,962 of accounts receivable as security for the loan. (1) prepare journal entries to record the above transactions. (2) which transaction would most likely require a note to the financial statements?