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The trial balance before adjustment for the Martinez Company shows the following balances.Dr.chromeaccounts receivable$84,700Allowance for...

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Accounting

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

Dr.

chrome

accounts receivable$84,700
Allowance for doubtful accounts2,700
sales revenue$462,400


Using the above data, provide the necessary journal entries to record each of the following cases. (Each situation is independent.)

1.To get additional cash, Martinez calculates without recourse $23,300 of accounts receivable with Stills Finance. The finance charge is 11% of the factored amount.
2.To obtain a one-year loan of $61,600, Martinez assigns $70,800 of specific accounts receivable to Crosby Financial. The finance charge is 8% of the loan; cash is received and accounts are turned over to Crosby Financial.
3.The company wants to keep the Allowance for Bad Debtors at 7% of gross accounts receivable.
4.Based on an aging analysis, a provision of $6,174 must be declared. Assume the assignment has a credit balance of $1,041.

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