onoing questions: Question 1: The McLatchy Ltd manufactures sweaters for sale to athletie-wear retailers. The following information was available on McLatchy for the years ended Dec 31, 2016 and 2017: Dee 31, 2016 S20,000 90,000 8,500 Cr 85,000 80,000 600,000 440,000 Dec 31,2017 $15,000 Cash Accounts receivable Allowance for doubtful accounts Inventory Current liabilities Total credit sales 80,000 86,000 550,000 500,000 Collections on accounts receivable 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. PrimaryFactors retains"urthe and will receive the collections directly from McLatchy's customers. McLatchy is finance chargeof6% nths transfer. The fair valueoftherecourse obligationiss7,00e 3. Melatchy wrote ofs$4,200 ofacoumts resgiyahle dyging 2017 Loss on Sale P Cr AIR 60,00 0 all 420 4:0 4. Based on the latest available information e 017allow or doubtful accounts hould 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 $3,000. McLatchy is a private company that follows ASPE Instructions: balance of $9.,600, postage stamps of $100, petty cash of $300, coins and currency on hand of (a) Prepare the journal entry for the sale to the customer from June1. uhet Nots releivabs