Mountain high ice cream company transferred $74,000 of accounts receivable to the prudential bank. the transfer was made without recourse. prudential remits 90% of the factored amount to mountain high and retains 10%.

when the bank collects the receivables, it will remit to mountain high the retained amount (which mountain estimates has a fair value of $6,400) less a 2% fee (2% of the total factored amount).required:
prepare the journal entry to record the transfer on the books of mountain high assuming that the sale criteria are met. (if no entry is required for a transaction/event, select "no journal entry required" in the first account field.)

Suppose you win a small lottery and have the choice of two ways to be paid: you can accept the money in a lump sum or in a series of payments over time. if you pick the lump sum, you get $2,950 today. if you pick payments over time, you get three payments: $1,000 today, $1,000 1 year from today, and $1,000 2 years from today. 1) at an interest rate of 6% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 2) at an interest rate of 9% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 3) years after you win the lottery, a friend in another country calls to ask your advice. by wild coincidence, she has just won another lottery with the same payout schemes. she must make a quick decision about whether to collect her money under the lump sum or the payments over time. what is the best advice to give your friend? a) the lump sum is always better. b) the payments over time are always better. c) it will depend on the interest rate; advise her to get a calculator. d) none of these answers is good advice.