Exercise 7-16 Your answer is partially correct. Try again. The trial balance before adjustment for Crane Company shows the following balances. Dr. Cr. Accounts Receivable Allowance for Doubtful Accounts Sales Revenue $84,800 3,450 $479,900 Using the data above, give the journal entries required to record each of the following cases. (Each situation is independent.) 1. 2. To obtain additional cash, Crane factors without recourse $20,200 of accounts receivable with Stills Finance. The finance charge is 10% of the amount factored. To obtain a 1-year loan of $55,600, Crane assigns $74,700 of specific receivable accounts to Crosby Financial. The finance charge is 9% of the loan; the cash is received and the accounts turned over to Crosby Financial. The company wants to maintain the Allowance for Doubtful Accounts at 7% of gross accounts receivable. Based on an aging analysis, an allowance of $5,447 should be reported. Assume the allowance has a credit balance of $1,118. 3. 4. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit 1. Cash 18,180 Loss on Sale of Receivables 2,020 Accounts Receivable 20,200 2. Cash 50,596 X Interest Payable 5,004 Notes Receivable 55,600 3. Bad Debt Expense TONE DOBORDO 1,414 Allowance for Doubtful Accounts 1,414 4. Bad Debt Expense Allowance for Doubtful Accounts