Ayayai Enterprises Ltd$.$ sells a specialty part that is used in widescreen televisions and provides the ultimate in screen clarity. To

promote sales of its product, Ayayai launched a program with some of its smaller customers. In exchange for making Ayayai their

exclusive supplier, Ayayai guarantees these customers to their creditors so that Ayayai will assume the customers'long$-$term debt in

the event of non$-$payment to the creditors. In addition to charging for parts, Ayayai also charges a fee to customers who take the

guarantee program. It bases the fee on the time frame that the guarantee covers, which is typically three years. In the current fiscal

year, the fees collected amounted to $$28,650$ for the three$-$year coverage period.

Six months before Ayayai's fiscal year end, one of its customers, Bramble Corp., began to experience financial difficulties and missed

two months of mortgage payments. Bramble's lender then called on Ayayai to make the mortgage payments. At its fiscal year end on

December $31,2023,$ Ayayai had recorded a receivable of $$14,325$ related to the payments made by Ayayai on Bramble's behalf.

Bramble owes the lender an additional $$28,650$ at this point. The lender is thinking of putting a lien on Bramble's assets that were

pledged as collateral for the loans. However, the collateral involves rights to the development of new state$-$of$-$the$-$art three$-$

dimensional television technology that is still unproven. Ayayai follows ASPE.

$($a$)$

Prepare all required journal entries and adjusting entries on Ayayai's books to recognize the transactions and events described above.

$($Hint: Use the accounts Service Revenue, Loss on Guarantee, and Liability for Guarantee.$)($Credit account titles are automatically

indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select $"$No Entry"

for the account titles and enter $0$ for the amounts.$)$

Account Titles and Explanation

$($To record cash received from customers$)$

$($To record payment made on behalf of Bramble$)$

$($To record revenue$)$

$($To record loss on guarantee$)$