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Exercise 7-16 The trial balance before adjustment for Whispering Company shows the following balances. Accounts Receivable Allowance for Doubtful Accounts Sales Revenue $85,300 3,610 453,900
Exercise 7-16 The trial balance before adjustment for Whispering Company shows the following balances. Accounts Receivable Allowance for Doubtful Accounts Sales Revenue $85,300 3,610 453,900 Using the data above, give the journal entries required to record each af the following cases. (Each situation is independent.) 1. To obtain additional cash, whispering factors without recourse 22,100 of accounts receivable with Stills Finance. The finance charge is 11% of the amount factored. 2. To obtain a 1-year loan of S56,600, whispen ng assigns $66,400 of specific receivable accounts to Crosby Financial. The finance charge is 9% 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 5% of gross accounts receivable. 4. Based on an aging analysis, an allowance of $5,681 should be reported. Assume the allowance has a credit balance of $1,017, (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 2. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amo No. Account Titles and Explanation 1. Debit Credit 2. 3. 4
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