## Answers

Debit | Credit | |||

1 | Cash | 21449 | ||

Loss on sale of Receivables | 2651 | =24100*11% | ||

Accounts Receivable | 24100 | |||

2 | Cash | 57868 | ||

Interest expense | 5032 | =62900*8% | ||

Accounts Payable | 62900 | |||

3 | Bad Debt expense | 8306 | =(86800*7%)+2230 | |

Allowance for Doubtful Accounts | 8306 | |||

4 | Bad Debt expense | 4695 | =5899-1204 | |

Allowance for Doubtful Accounts | 4695 |

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