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

		Dr.		Cr.
Accounts Receivable		$ 86,400
Allowance for Doubtful Accounts		2,450
Sales Revenue				$ 462,200

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, Sandhill factors without recourse $ 22,300 of accounts receivable with Stills Finance. The finance charge is 12% of the amount factored.
2.		To obtain a 1-year loan of $ 60,800, Sandhill pledges $ 71,300 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 6% of gross accounts receivable.
4.		Based on an aging analysis, an allowance of $ 5,749 should be reported. Assume the allowance has a credit balance of $ 1,149.

(If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

No.	Account Titles and Explanation	Debit	Credit
1.
2.
3.
4.