Question 4 Journalizing Various Receivable Transactions

The trial balance before adjustment for Jones Company shows the following balances:

	Dr	Cr
Accounts Receivable	$90,000
Allowance for Doubtful Accounts	2,000
Sales Revenue		$530,000

Instructions: Using the data above, give the journal entries required to record each of the following cases. (Both situations are independent).

To obtain additional cash, Jones factors without recourse $30,000 of accounts receivable with XYZ Finance. The finance charge is 10% of the amount factored.