The trial balance before adjustment for Ayayai Company shows the following balances.

Dr. Cr. Accounts Receivable $83,100 Allowance for Doubtful Accounts 3,380 Sales Revenue $443,800

Using the data above, give the journal entries required to record each of the following cases. (Each situation is independent.)

1. To obtain additional cash, Ayayai factors without recourse $26,200 of accounts receivable with Stills Finance. The finance charge is 10% of the amount factored. 2. To obtain a 1-year loan of $58,600, Ayayai assigns $70,800 of specific receivable accounts to Crosby Financial. The finance charge is 8% of the loan; the cash is received and the accounts turned over to Crosby Financial. 3. The company wants to maintain the Allowance for Doubtful Accounts at 7% of gross accounts receivable. 4. Based on an aging analysis, an allowance of $5,786 should be reported. Assume the allowance has a credit balance of $1,122.