Exercise 7-16 The trial balance before adjustment for Vaughn Company shows the following balances. Dr . Accounts Receivable $86,900 Allowance for Doubtful Accounts 2,410 Sales Revenue $452,700 Using the data above, give the journal entries required to record each of the following cases. (Each situation independent.) 1. To obtain additional cash, Vaughn factors without recourse $28,300 of accounts receivable with Stills Finance. The finance charge is 12 % of the amount factored. 2. To obtain a 1-year loan of $59,500, Vaughn assigns $65,500 of specific receivable accounts too Crosby Financial. The finance charge is 9% turned over to Crosby Financial. f the loan; the cash is received and the accounts The company wants to maintain the Allowance for Doubtful Accounts at 7% of gross accounts receivable 3 4. Based on an aging analysis, an allowance of $6,317 should be reported. Assume the allowance has a credit balance $1,161. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Debit Credit No. Account Titles and Explanation 1. 2. 3. 4