The trial balance before adjustment for Sheffield Company shows the following balances.
Dr.
Cr.
Accounts Receivable
$84,800
Allowance for Doubtful Accounts
2,420
Sales Revenue
$434,200
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, Sheffield factors without recourse $29,700 of accounts receivable with Stills Finance. The finance charge is 11% of the amount factored.
2.
To obtain a 1-year loan of $57,600, Sheffield assigns $72,000 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 $5,733 should be reported. Assume the allowance has a credit balance of $1,071.
(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.)
No.
Account Titles and Explanation
Debit
Credit
1.
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2.
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3.
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4.
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.
The trial balance before adjustment for Sheffield Company shows the .docx
1. The trial balance before adjustment for Sheffield Company
shows the following balances.
Dr.
Cr.
Accounts Receivable
$84,800
Allowance for Doubtful Accounts
2,420
Sales Revenue
$434,200
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, Sheffield factors without recourse
$29,700 of accounts receivable with Stills Finance. The finance
charge is 11% of the amount factored.
2.
To obtain a 1-year loan of $57,600, Sheffield assigns $72,000 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.
2. 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 $5,733 should be
reported. Assume the allowance has a credit balance of $1,071.
(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.)
No.
Account Titles and Explanation
Debit
Credit
1.
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
2.
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
![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 $5,733 should be
reported. Assume the allowance has a credit balance of $1,071.
(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.)
No.
Account Titles and Explanation
Debit
Credit
1.
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
2.
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)