Accounts Receivable Allowance for Doubtful Accounts Sales Revenue 1. 2. 3. Using the data above, give the journal entries required to record each of the following cases. (Each situation is independent.) 4. 1. 2. 3. 4. No. Account Titles and Explanation (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.) To obtain additional cash, Waterway 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, Waterway 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. Cash Dr. The company wants to maintain the Allowance for Doubtful Accounts at 5% 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. Loss on Sale of Receivables $85,600 2,940 Accounts Receivable Cash Lo Bad Debt Expense Cr. $475,600 Bad Debt Expense Allowance for Doubtful Accounts Allowance for Doubtful Accounts Debit Credit 24
Accounts Receivable Allowance for Doubtful Accounts Sales Revenue 1. 2. 3. Using the data above, give the journal entries required to record each of the following cases. (Each situation is independent.) 4. 1. 2. 3. 4. No. Account Titles and Explanation (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.) To obtain additional cash, Waterway 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, Waterway 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. Cash Dr. The company wants to maintain the Allowance for Doubtful Accounts at 5% 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. Loss on Sale of Receivables $85,600 2,940 Accounts Receivable Cash Lo Bad Debt Expense Cr. $475,600 Bad Debt Expense Allowance for Doubtful Accounts Allowance for Doubtful Accounts Debit Credit 24
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter14: Accounting For Uncollectible Accounts Receivable
Section14.2: Writing Off And Collecting Uncollectible Accounts Receivable
Problem 1AYU
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
Transcribed Image Text:Accounts Receivable
Allowance for Doubtful Accounts
Sales Revenue
1.
2.
3.
Using the data above, give the journal entries required to record each of the following cases. (Each situation is
independent.)
4.
1.
2.
3.
4.
No. Account Titles and Explanation
(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.)
To obtain additional cash, Waterway 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, Waterway 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.
Cash
Dr.
The company wants to maintain the Allowance for Doubtful Accounts at 5% 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.
Loss on Sale of Receivables
$85,600
2,940
Accounts Receivable
Cash
Lo
Bad Debt Expense
Cr.
$475,600
Bad Debt Expense
Allowance for Doubtful Accounts
Allowance for Doubtful Accounts
Debit
Credit
24
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