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give the journal entries required to record each of the following cases.

give the journal entries required to record each of the following cases.

FINANCIAL ACCOUNTING
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 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 enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) No. Account Titles and Explanation Debit Credit 1. 2. 3.
Transcribed Image Text: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 enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) No. Account Titles and Explanation Debit Credit 1. 2. 3.
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