The trial balance before adjustment for Sheffield Company shows the following balances.
|Allowance for Doubtful Accounts||2,420|
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, Sheffield factors without recourse $29,700 of accounts receivable with Stills Finance. The finance charge is 11% of the amount factored.|
|2.||To obtain a 1-year loan of $57,600, Sheffield assigns $72,000 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.|
|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 $5,733 should be reported. Assume the allowance has a credit balance of $1,071.|
(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.)
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