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8 The trial balance before adjustment for Concord Company shows the following balances. Dr. Cr. Accounts Receivable $82,200 Allowance for Doubtful Accounts 3,310 Sales Revenue

8

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

Dr. Cr.
Accounts Receivable $82,200
Allowance for Doubtful Accounts 3,310
Sales Revenue $440,800

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, Concord factors without recourse $26,400 of accounts receivable with Stills Finance. The finance charge is10% of the amount factored.
2. To obtain a 1-year loan of $57,200, Concord assigns $73,900 of specific receivable accounts to Crosby Financial. The finance charge is8% 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 at5% of gross accounts receivable.
4. Based on an aging analysis, an allowance of $5,746 should be reported. Assume the allowance has a credit balance of $1,181.

(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.
2.
3.
4.

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