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onoing questions: Question 1: The McLatchy Ltd manufactures sweaters for sale to athletic-wear retailers. The following information was available on McLatchy for the years ended Dec 31, 2016 and 2017 Dec 31, 2016 Dec 31,2017 Cash Accounts receivable Allowance for doubtful accounts Inventory Current liabilities Total credit sales Collections on accounts receivable S20,000 90,000 500 Cr 85,000 80,000 600,0002 440,000 80,000 86,000 550,000 500,000 During 2017, McLatchy Ltd had the following transactions: 1. On June 1, 2017, sales of $80,000 to a major customer were settled, with McLatchy accepting an $80,000 one-year note bearing 7% interest that is payable at maturity. The S80.000 is not included in the total credit sales amount above 2. McLatchy factors some accounts receivable at the end of the year. Accounts totaling $60,000 are transferred to Primary Factors Inc., with recourse. Primary Factors retains 5% af the and will receive the collections directly from MeLatchy's customers. McLatchy is finance charge of 6% on this transfer. The fair value of the recourse obligation is $7,00 r balances.0 3. Melatchy wrote ofs$4,200 ofacoumts resgiyahle dyging 2017 Losy on Sale Cr. A/R 60,000 bil ccounssho 4. Based on the latest available information, the 2017 allowance for have a balance f S12.000at Dec 31, 2017. Additional information: Included in the gase balance at Dec 31, 2017, are the following: a chequing account with a balance of $9.600, postage stamps of $100, petty cash of $300, coins and currency on hand of $3,000. McLatchy is a private company that follows ASPE Instructions: (a) Prepare the journal entry for the sale to the customer from June1. uhe Nots reveivabs Sales (b) Prepare the journal entry for the factoring of the accounts receivable to Primary Factors Inc. on the above transactions and additional information, determine the balances of (c) Based Accounts Receivables and Bad Debt Expense at Dec 31, 2017. (d) Prepare the current assets section of McLatchy's statement of financial position at I 2017