Journalizing various receivable transactions
Course:- Accounting Basics
Reference No.:- EM131051083

Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Accounting Basics

(Journalizing Various Receivable Transactions) The trial balance before adjustment for Phil Collins Company shows the following balances.


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, Collins factors without recourse $25,000 of accounts receivable with Stills Finance. The finance charge is 10% of the amount factored.

2. To obtain a 1-year loan of $55,000, Collins assigns $65,000 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 5% of gross accounts receivable.

4. The company wishes to increase the allowance account by 1½% of net sales.

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
In its first month of operations, Quirk Company made three purchases of merchandise in the following sequence: (1) 328 units at $7, (2) 438 units at $8, and (3) 219 units at
Record each of the following transactions in general journal form and then show the effect of the transaction in a horizontal statements model. The first transaction is shown
Why do you think Jon is taking weeks to directly communicate with stakeholders about the new system?Why do you think Jon and the system administrators decided to outsource th
If you are using the Blackboard Mobile Learn iOS App, please click "View in Browser" Click the link above to submit your assignment.Students, please view the "Submit a Click
Create a T-account for the Allowance for Doubtful Accounts and enter into it the amounts from the above schedule. Then write the T-account in equation format to prove that the
Is it more likely to come to resemble other Caribbean or Central American countries, could it be sustained similar to the UK model, or do you foresee something entirely diff
This feature claims that Ebenezer Scrooge promoted economic growth more when he was a miser and saved most of his income than when he reformed and began spending freely.
On January 1, 2005, the Klinefelter Company purchased a building for $520,000. The building had an estimated life of 20 years and an estimated residual value of $20,000.