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

		Dr.		Cr.
Accounts Receivable		$82,200
Allowance for Doubtful Accounts		3,310
Sales Revenue				$440,800

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, Larkspur factors without recourse $26,400 of accounts receivable with Stills Finance. The finance charge is 10% of the amount factored.
2.		To obtain a 1-year loan of $57,200, Larkspur pledges $73,900 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 5% of gross accounts receivable.
4.		Based on an aging analysis, an allowance of $5,746 should be reported. Assume the allowance has a credit balance of $1,181.

No. Account Titles and Explanation Debit Credit 1