Exercise 7-05 (Part Level Submission) On June 3, Sheffield Company sold to Chester Company merchandise having a sale price of $5,600 with terms of 3/10, n/60, f.o.b. shipping point. An invoice totaling $95, terms n/30, was received by Chester on June 8 from John Booth Transport Service for the freight cost. On June 12, the company received a check for the balance due from Chester Company. (a) Prepare journal entries on the Sheffield Company books to record all the events noted above under each of the following bases. (1) Sales and receivables are entered at gross selling price. (2) Sales and receivables are entered at net of cash discounts. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit (1) June 12 (2) Exercise 7-16 The trial balance before adjustment for Sweet Company shows the following balances. Dr. Cr. Accounts Receivable Allowance for Doubtful Accounts Sales Revenue $84,700 2,700 $462,400 Using the data above, give the journal entries required to record each of the following cases. (Each situation is independent.) 1. 2. To obtain additional cash, Sweet factors without recourse $23,300 of accounts receivable with Stills Finance. The finance charge is 11% of the amount factored. To obtain a 1-year loan of $61,600, Sweet pledges $70,800 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. The company wants to maintain the Allowance for Doubtful Accounts at 7% of gross accounts receivable. Based on an aging analysis, an allowance of $6,174 should be reported. Assume the allowance has a credit balance of $1,041. 3. 4. (If no entry is required, select "No Entry" for the account titles and enter o 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