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The trial balance before adjustment for Splish Company shows the following balances

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

Dr. Cr.

Accounts Receivable $85,700

Allowance for Doubtful Accounts 2,220

Sales Revenue $442,400

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, Splish factors without recourse $21,300 of accounts receivable with Stills Finance. The finance charge is 11% of the amount factored.

2. To obtain a 1-year loan of $59,300, Splish pledges $73,700 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 $5,614 should be reported. Assume the allowance has a credit balance of $1,048.

(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.)