The trial balance before adjustment for Wildhorse Company shows the following balances. Accounts Receivable Allowance for Doubtful Accounts Sales Revenue 1. Dr. 2 $85,600 2,940 Cr. Using the data above, give the journal entries required to record each of the following cases. (Each situation is independent.) $475,600 To obtain additional cash, Wildhorse factors without recourse $24,300 of accounts receivable with Stills Finance. The finance charge is 10% of the amount factored. To obtain a 1-year loan of $58,900, Wildhorse pledges $67,000 of specific receivable accounts to Crosby Financial. The

The trial balance before adjustment for Wildhorse Company shows the following balances. Accounts Receivable Allowance for Doubtful Accounts Sales Revenue 1. Dr. 2 $85,600 2,940 Cr. Using the data above, give the journal entries required to record each of the following cases. (Each situation is independent.) $475,600 To obtain additional cash, Wildhorse factors without recourse $24,300 of accounts receivable with Stills Finance. The finance charge is 10% of the amount factored. To obtain a 1-year loan of $58,900, Wildhorse pledges $67,000 of specific receivable accounts to Crosby Financial. The

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The trial balance before adjustment for Concord Company shows the following balances. Accounts Receivable. Allowance for Doubtful Accounts Sales Revenue 1. 2. 3. Dr. Using the data above, give the journal entries required to record each of the following cases. (Each situation is independent.) 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. 4. $82,900 2,480 Cr. $430,000 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 Skysong Company shows the following balances. Dr. Cr. Accounts Receivable $86,400 Allowance for Doubtful Accounts 2,450 Sales Revenue $462,200 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, Skysong factors without recourse $22,300 of accounts receivable with Stills Finance. The finance charge is 12% of the amount factored. To obtain a 1-year loan of $60,800, Skysong pledges $71,300 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 Allowance for Doubtful Accounts at 6% of gross accounts receivable. 4. Based on an aging analysis, an allowance of $5,749 should be reported. Assume the allowance has a credit balance of $1.149. (If no entry is required, select "No Entry" for the account titles and…
The trial balance before adjustment for Pharoah Company shows the following balances. Dr. Cr. Accounts Receivable $83,500 Allowance for Doubtful Accounts 1,940 Sales Revenue $455,100 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, Pharoah factors without recourse $26,800 of accounts receivable with Stills Finance. The finance charge is 11% of the amount factored. 2. To obtain a 1-year loan of $61,600, Pharoah pledges $69,800 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 $5,452 should be reported. Assume the allowance has a credit balance of $1,163. (If…
The trial balance before adjustment for Flounder Company shows the following balances. Dr. Cr. Accounts Receivable $84,500 Allowance for Doubtful Accounts 2,980 Sales Revenue $457,000 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, Flounder factors without recourse $27,700 of accounts receivable with Stills Finance. The finance charge is 12% of the amount factored. 2. To obtain a 1-year loan of $55,400, Flounder pledges $66,900 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. 3. The company wants to maintain the Allowance for Doubtful Accounts at 6% of gross accounts receivable. 4. Based on an aging analysis, an allowance of $5,909 should be reported. Assume the allowance has a credit balance of $1,099.
The following account balances come from the records of Ourso Company: Accounts receivable Allowance for doubtful accounts During the accounting period, Ourso recorded $11,850 of sales revenue on account. The company also wrote off a $194 account receivable. Required Beginning Balance Ending Balance $3,198 $3,549 134 203 a. Determine the amount of cash collected from receivables. b. Determine the amount of uncollectible accounts expense recognized during the period. a. Collections of accounts receivable b. Uncollectible accounts expense
The trial balance before adjustment for Martinez Company shows the following balances. Dr. Cr. Accounts Receivable $84,600 Allowance for Doubtful Accounts 2,650 Sales Revenue $447,400 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, Martinez factors without recourse $29,200 of accounts receivable with Stills Finance. The finance charge is 12% of the amount factored. 2. To obtain a 1-year loan of $57,500, Martinez pledges $71,400 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. 4. Based on an aging analysis, an allowance of $5,717 should be reported. Assume the allowance has a credit balance of $998. 3.
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The following account balances come from the records of Ourso Company. Accounts receivable Allowance for doubtful accounts Beginning Balance $ 3,141 Ending Balance $ 3,982 202 116 During the accounting period, Ourso recorded $12,300 of sales revenue on account. The company also wrote off a $123 account receivable. Required a. Determine the amount of cash collected from receivables. b. Determine the amount of uncollectible accounts expense recognized during the period. Complete this question by entering your answers in the tabs below. Required A Required B Determine the amount of cash collected from receivables. Collections of accounts receivable
The following account balances come from the records of Ourso Company: Beginning Balance Ending Balance Accounts receivable Allowance for doubtful accounts $ 2,570 128 $ 3,414 187 During the accounting period, Ourso recorded $12,450 of sales revenue on account. The company also wrote off a $192 account receivable. Required: 1. Determine the amount of cash collected from receivables. 2. Determine the amount of uncollectible accounts expense recognized during the period. a. Collections of accounts receivable b. Uncollectible accounts expense
Required information [The following information applies to the questions displayed below.] At December 31, Hawke Company reports the following results for its calendar year. $2,181,050 $3,134,000 Cash sales Credit sales In addition, its unadjusted trial balance includes the following items. $949,602 debit $ 10,550 debit Accounts receivable Allowance for doubtful accounts 2. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet given the facts in part 1a. Current assets: %24
Required information [The following information applies to the questions displayed below.] At December 31, Hawke Company reports the following results for its calendar year. $2,181,050 $3,134,000 Cash sales Credit sales In addition, its unadjusted trial balance includes the following items. $949,602 debit $10,550 debit Accounts receivable Allowance for doubtful accounts 3. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet given the facts in part 1c. (Do not round intermediate calculations.) Current assets.
3. Below are the subledger accounts receivable for Emilio Company: Anthony.. Malaya Mekhi. Omari. Kaytana. Total. $ 7,200 9,700 18,200 37,000 900 $73,000 There is no balance in the Allowance for Doubtful accounts. Instructions a. Prepare the appropriate journal entries given the following transactions: i. the controller would like you the write off the following accounts as uncollectible: 7,200 18,200 Anthony. Mekhi.. Кaytana. 900 ii. received payment from Malaya for $2,600 iii. collected $7,200 from the Anthony account iv. write off the balance in the Malaya account v. collected $18,000 from Mekhi, the remainder will not be collectible vi. the controller estimates that 2% of the total accounts receivable balance will be uncollectible b. What is the net realizable value of the accounts receivable after all adjustments? Date Account Titles and Explanation PR Debit Credit