The trial balance before adjustment for Concord Company shows the following balances. Dr. Cr. Accounts Receivable:...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6653eb44aff62_7486653eb44564e8.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6653eb4566c37_7496653eb45084d2.jpg)
Transcribed Image Text:
The trial balance before adjustment for Concord Company shows the following balances. Dr. Cr. Accounts Receivable: $82,900 Allowance for Doubtful Accounts 2,480 Sales Revenue $430,000 Using the data above, give the journal entries required to record each of the following cases. (Each situation is independent.) 1. 2. 3. 4. To obtain additional cash, Concord factors without recourse $25,700 of accounts receivable with Stills Finance. The finance charge is 12% of the amount factored. To obtain a 1-year loan of $56,600, Concord pledges $67,900 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 6% of gross accounts receivable. Based on an aging analysis, an allowance of $5,385 should be reported. Assume the allowance has a credit balance of $1,156. The trial balance before adjustment for Concord Company shows the following balances. Dr. Cr. Accounts Receivable: $82,900 Allowance for Doubtful Accounts 2,480 Sales Revenue $430,000 Using the data above, give the journal entries required to record each of the following cases. (Each situation is independent.) 1. 2. 3. 4. To obtain additional cash, Concord factors without recourse $25,700 of accounts receivable with Stills Finance. The finance charge is 12% of the amount factored. To obtain a 1-year loan of $56,600, Concord pledges $67,900 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 6% of gross accounts receivable. Based on an aging analysis, an allowance of $5,385 should be reported. Assume the allowance has a credit balance of $1,156.
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Jan, Pat, and Misa are partners in South Central Company. The partnership agreement states that Jan is to receive 8 percent interest on his capital balance at the beginning of the year, Pat is to...
-
Sun Corporation was created on January 1, 20X2, and quickly became successful. On January 1, 20X6, the owner sold 80 percent of the stock to Weatherbee Company at underlying book value. Weatherbee...
-
What is the top priority for hazardous waste management (general method) under RCRA, and what is the lowest priority?
-
Tempo Companys fixed budget (based on sales of 7,000 units) for the first quarter of calendar year 2015 reveals the following. Prepare flexible budgets following the format of Exhibit 23.3 that show...
-
The graph of y = f (x) is shown below. List the intervals where the graph of f is increasing. Graph consists of 3 line segments from x equals negative 4 to x equals 4. Graph is decreasing from x...
-
In circle G, mDE = 84. Solve for x if m/DFE = (12x + 37). If necessary, round your answer to the nearest tenth. F 'G D
-
Analyze the impact of a significant disruptive technology on an industry. Discuss how established businesses can adapt and thrive in the face of rapid technological change.
-
66. (Appendix) Microsoft Co. is considering the purchase of a P100,000 machine that is expected to result in a decrease of P15,000 per year in cash expenses. This machine, which has no residual...
-
The Affordable Care Act will have a positive impact on state health policy by expanding Medicaid and providing subsidies for private insurance. However, there will be some challenges associated with...
-
Listed below are requirements that must be followed when establishing and maintaining payroll systems. Complete the table below: For each item listed, identify one (1) legislative requirement....
-
Answer the questions using the concepts given in class. Questions must be answered in complete sentences. Mara Fuentes has been working as an administrative secretary in a commercial company for...
-
(Error Correction Entries) The first audit of the books of Bruce Gingrich Company was made for the year ended December 31, 2008. In examining the books, the auditor found that certain items had been...
-
(Error Analysis and Correcting Entry) You have been engaged to review the financial statements of Gottschalk Corporation. In the course of your examination you conclude that the bookkeeper hired...
-
(Error Analysis; Correcting Entries) A partial trial balance of Julie Hartsack Corporation is as follows on December 31, 2008. Additional adjusting data: 1. A physical count of supplies on hand on...
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App