Business, 03.07.2020 18:01 bammbamm538

The trial balance before adjustment for Stellar Company shows the following balances. Dr. Cr.
Accounts Receivable $86,800
Allowance for Doubtful Accounts 2,230
Sales Revenue $462,600

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, Stellar factors without recourse $24,100 of accounts receivable with Stills Finance. The finance charge is 11% of the amount factored.
2. To obtain a 1-year loan of $62,900, Stellar pledges $71,900 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 7% of gross accounts receivable.
4. Based on an aging analysis, an allowance of $5,899 should be reported. Assume the allowance has a credit balance of $1,204.

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The trial balance before adjustment for Stellar Company shows the following balances. Dr. Cr.

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