The year-end closing balances for Gala Corp. at December 31, 2018, included the following:Accounts receivable129,000 dr Allowance for doubtful accounts 5,000 crTransactions in 2019 include the following:1. Gala recognized credit sales during the year of $1,500,0002. During the year, the company recognized bad debts expense of 1% of the credit sales using the allowance method.3. Gross accounts receivable of $1,400,000 were collected during the year.Half of this amount was received within the discount period allowing customers to take advantage of a 2% sales discount.4.An additional $8,000 was received in payment of an account that had been written off in 2018. 5.Customer accounts of $22,000 were deemed uncollectable and written off during 2019. 6. At year end, Gala estimates that the Allowance for Doubtful Accounts will be 5% of the ending balance of $207,000 in Accounts Receivable and adjusts the account accordingly.

Required:1.1 Prepare the journal entries required for each of the above 6 bullets.Use the bullet number instead of a date.

1.2 Unrelated to the above, PinkPearl Enterprises transfers $100,000 of accounts receivable to Opal Factors Inc. on a "with recourse" basis receiving 90% of the receivables balance as cash proceeds. The transaction meets the criteria for a sale and PinkPearl estimates that the recourse obligation has a fair value of $6,000.As a result of this transaction, PinkPearl would recognize aa) Loss of $4,000 b) Loss of $10,000 c) Loss of $16,000 d) Gain of $4,000