The trial balance before adjustment for Shamrock Company shows the following balances. Dr. Cr. Accounts Receivable $82,300 Allowance for Doubtful Accounts 3,700 Sales Revenue $467,700

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, Shamrock factors without recourse $21,500 of accounts receivable with Stills Finance. The finance charge is 12% of the amount factored.

2. To obtain a 1-year loan of $64,600, Shamrock assigns $67,200 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 $5,318 should be reported. Assume the allowance has a credit balance of $1,175.