Question: On June 30, Roman Co. has $125,900 of accounts receivable. Prepare journal entries to record the following selected July transactions. Also prepare any footnotes to the July 31 financial statements that result from these transactions. (The company uses the perpetual inventory system.) July 4 Sold $6,295 of merchandise (that had cost $4,000) to customers on credit. 9 Sold $18,000 of accounts receivable to Center Bank. Center charges a 4% factoring fee. 17 Received $3,436 cash from customers in payment on their accounts. 27 Borrowed $10,000 cash from Center Bank, pledging $13,000 of accounts receivable as security for the loan.