Ayayai Enterprises Ltd. sells a specialty part that is used in widescreen televisions and provides the ultimate in screen clarity. To promote sales of its product, Ayayai launched a program with some of its smaller customers. In exchange for making Ayayai their exclusive supplier, Ayayai guarantees these customers to their creditors so that Ayayai will assume the customers' long-term debt in the event of non-payment to the creditors. In addition to charging for parts, Ayayai also charges a fee to customers who take the guarantee program. It bases the fee on the time frame that the guarantee covers, which is typically three years. In the current fiscal year, the fees collected amounted to $32,460 for the three- year coverage period. Six months before Ayayai's fiscal year end, one of its customers, Blue Corp, began to experience financial difficulties and missed two months of mortgage payments. Blue's lender then called on Ayayai to make the mortgage payments. At its fiscal year end on December 31, 2023, Ayayai had recorded a receivable of $16,230 related to the payments made by Ayayai on Blue's behalf. Blue owes the lender an additional $32,460 at this point. The lender is thinking of putting a lien on Blue's assets that were pledged as collateral for the loans. However, the collateral involves rights to the development of new state-of-the-art three-dimensional television technology that is still unproven. Ayayai follows ASPE (a) Prepare all required journal entries and adjusting entries on Ayayai's books to recognize the transactions and events described above. (Hint: Use the accounts Service Revenue, Loss on Guarantee, and Liability for Guarantee.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Account Titles and Explanation (To record cash received from customers) (To record payment made on behalf of Blue) (To record revenue) Debit Credit |||| I