The trial balance before adjustment for sheffield company shows the

The trial balance before adjustment for Sheffield Company shows the following balances.

   

Dr.

 

Cr.

Accounts Receivable   $84,800    
Allowance for Doubtful Accounts   2,420    
Sales Revenue       $434,200

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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