Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The trial balance before adjustment for Sage Company shows the following balances. Using the data above, give the journal entries required to record each of

image text in transcribedimage text in transcribed The trial balance before adjustment for Sage Company shows the following balances. 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, Sage factors without recourse $22,100 of accounts receivable with Stills Finance. The finance charge is 12% of the amount factored. 2. To obtain a 1-year loan of $57,700, Sage pledges $70,600 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 5% of gross accounts receivable. 4. Based on an aging analysis, an allowance of $5,726 should be reported. Assume the allowance has a credit balance of $1,096 (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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

What does the transport layer do?

Answered: 1 week ago

Question

Make efficient use of your practice time?

Answered: 1 week ago