Kendall corporation designs and manufactures sports cars. during the course of its business, kendall generates substantialreceivables from its customers. on july 1, 2017. to improve its cash flow, kendall establishes a securitization entity (se) and(1) transfers without recourse $20.5 million of its receivables to the se and (2) surrenders control over these receivables. the se then sells securities backed by the cash flows associated with kendall’s receivables. because the se is separatefrom kendall. and the receivables are diversified across hundreds of customers, investors are willing to pay $24 million forthe securities. the se then transfers the 524 million to kendall corporation. required: 1. prepare kendall’s entry to record the securitization as a sale.2 show how your answer to requirement 1 would change if control over the receivables is not surrendered at the time ofthe transfer (i. e.. an agreement exists whereby kendall would be forced to absorb significant losses associated with these’s receivables).