x 1 Student Portal Main Third Party Resource LCS Learni X OWileyPLUS ugen.wileyplus.com/edugen/Iti/main.uni Kieso, Intermediate Accounting, 17e Help I System Announcements CALCULATOR PRINTER VERSION BACK NEXT ES Exercise 7-16 The trial balance before adjustment for Sunland Company shows the following balances. Dr. Cr. Accounts Receivable Allowance for Doubtful Accounts $85,600 2,940 Sales Revenue $475,600 Using the data above, give the journal entries reguired to record each of the following cases. (Each situation is independent.) 1. To obtain additional cash, Sunland 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, Sunland pledges $67,000 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. 2. The company wants to maintain the Allowance for Doubtful Accounts at 5%6 of gross accounts receivable. Based on an aging analysis, an allowance of $5,577 should be reported. Assume the allowance has a credit balance of $1,181. 3. 4. (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.) Study Debit Credit No. Account Titles and Explanation 1. 100 AM 43/2020 nere to search *** 2. Help I System Announcements (I no entry IS required, select "No Entry Tor the account titles and enter 0 for the amounts. Credit account titles are auto entered. Do not indent manually.) ES No. Account Titles and Explanation Debit Credit 1. 3. dy 4. SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO TEXT Question Attempts: 0 of 5 ased e to search 2.
x 1 Student Portal Main Third Party Resource LCS Learni X OWileyPLUS ugen.wileyplus.com/edugen/Iti/main.uni Kieso, Intermediate Accounting, 17e Help I System Announcements CALCULATOR PRINTER VERSION BACK NEXT ES Exercise 7-16 The trial balance before adjustment for Sunland Company shows the following balances. Dr. Cr. Accounts Receivable Allowance for Doubtful Accounts $85,600 2,940 Sales Revenue $475,600 Using the data above, give the journal entries reguired to record each of the following cases. (Each situation is independent.) 1. To obtain additional cash, Sunland 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, Sunland pledges $67,000 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. 2. The company wants to maintain the Allowance for Doubtful Accounts at 5%6 of gross accounts receivable. Based on an aging analysis, an allowance of $5,577 should be reported. Assume the allowance has a credit balance of $1,181. 3. 4. (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.) Study Debit Credit No. Account Titles and Explanation 1. 100 AM 43/2020 nere to search *** 2. Help I System Announcements (I no entry IS required, select "No Entry Tor the account titles and enter 0 for the amounts. Credit account titles are auto entered. Do not indent manually.) ES No. Account Titles and Explanation Debit Credit 1. 3. dy 4. SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO TEXT Question Attempts: 0 of 5 ased e to search 2.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Need help answering these questions
Thank you
Transcribed Image Text:x 1
Student Portal Main
Third Party Resource LCS Learni X
OWileyPLUS
ugen.wileyplus.com/edugen/Iti/main.uni
Kieso, Intermediate Accounting, 17e
Help I System Announcements
CALCULATOR
PRINTER VERSION
BACK
NEXT
ES
Exercise 7-16
The trial balance before adjustment for Sunland Company shows the following balances.
Dr.
Cr.
Accounts Receivable
Allowance for Doubtful Accounts
$85,600
2,940
Sales Revenue
$475,600
Using the data above, give the journal entries reguired to record each of the following cases. (Each situation is independent.)
1.
To obtain additional cash, Sunland 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, Sunland pledges $67,000 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.
2.
The company wants to maintain the Allowance for Doubtful Accounts at 5%6 of gross accounts receivable.
Based on an aging analysis, an allowance of $5,577 should be reported. Assume the allowance has a credit balance of $1,181.
3.
4.
(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.)
Study
Debit
Credit
No. Account Titles and Explanation
1.
100 AM
43/2020
nere to search
***
2.
Transcribed Image Text:Help I System Announcements
(I no entry IS required, select "No Entry Tor the account titles and enter 0 for the amounts. Credit account titles are auto
entered. Do not indent manually.)
ES
No. Account Titles and Explanation
Debit
Credit
1.
3.
dy
4.
SHOW LIST OF ACCOUNTS
LINK TO TEXT
LINK TO TEXT
LINK TO TEXT
Question Attempts: 0 of 5 ased
e to search
2.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education