The trial balance before adjustment for Bramble 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, Bramble 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, Bramble 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 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.
(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.
Cash
2.
3.
4.
