High Tech Industries (HTI) is producer of biscuits and candies. It is a public company with December 31 year end.

Following are the selected portions o HTI trial as of December 1, 2019:

Debit Credit

Accounts Receivables $1,300,000

Allowance for Doubtful Accounts $ 38,750

December 4: HTI factored $240,000 of their accounts receivable to General Factor Corp., on a without recourse basis and received net cash of $218,400 The receivables are transferred to General Factor. General Factor charged a finance charge of 4% of the dollar value of the receivables.

December 9:HTI factored $300,000 of their accounts receivable to Shark Factor Corp., on a recourse basis. The receivables are transferred to Shark Factor. Shark Factor charged a finance charge of 2% of the dollar value of the receivables, and withheld 4% of the receivable value. Total loss on transaction is $11,000.

December 12: HTI received a cheque of $8,000 with the note that HTI will be paid 60% of the accounts receivable owed to HTI by Illiquidity Inc. HTI sold candies with the total invoice amount of $25,000 on June 15, 2019 and entire amount was written off by HTI in November 2019.

December 15: HTI accepted a 3 year, non interest bearing note of 80,000 from Bankrupt Inc for full and final settlement of accounts receivables of $80,000. Incremental borrowing rate of HTI is 5% pa and market rate for Bankrupt Inc is 7% and rate on 3 year government bond is 3%.

Based on analysis of accounts receivable listing, credit manager of HTI estimates that AFDA should be 3% of the year end gross accounts receivables balance.

Required: Prepare all the journal entries/adjusting journal entries for the period ending December 31, 2019