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The trial balance before adjustment for Sarasota Company shows the following balances. Dr. Cr. Accounts Receivable $84,800 Allowance for Doubtful Accounts Sales Revenue 3,450 $479,900

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The trial balance before adjustment for Sarasota Company shows the following balances. Dr. Cr. Accounts Receivable $84,800 Allowance for Doubtful Accounts Sales Revenue 3,450 $479,900 Using the data above, give the journal entries required to record each of the folowing cases. (Each stuation is independent.) To obtain additional cash, Sarasota factors without recourse $20,200 of accounts receivable with Stils Finance The finance charge is 10% of the amount factored 1. To obtain a 1-year loan of $55,600, Sarasota pledges $74,700 or specific receivabie accounts to Crosby Financial The finance charge is 9% of the loan; the cash is received and the accounts 2. tuned over to Crosby Financial The company wants to maintain the Allowance for Doubtful Accounts at 7% of gross accounts receivable Based on an aging analysis, an allowance of $5,447 should be reported Assume the altowance has a credit balance of $1,11 3. 4. r the amaunts, Credit account tities are automatically indented when the amount is entered. Do net (if no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credir account tibles are automatically indented when the amount is entered. Do not indent manually.) No. Account TIties and Explanation Debit Credt 1 dy 2 3. Teal Corporation factors $250,500 of accounts receivable with Kathleen Battle Financing, Inc. on a with recourse basis. Kathleen Battle Finanding will collect the receivables. The recehables records are transferred to Kathleen Battle Financing on August 15, 2020. Kathleen Battle Financing assesses a finance charge of 2% of the amount of accounts receivable and aiso reserves an amount equal to 4% of accounts receivable to cover probable adjustments (b) Assume that the conditions are met for a transfer of receivables with recourse to be accounted for as a sale. Prepare the journa entry on August 15, 2020, for Teal to recond the sale of receivables, assuming the recourse obligation has a fair value of $4,890. (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.) Account Titles and Explanation Credit Date Debit Aug. 15, 2020

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