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For Tammy Company, sales (all on credit) and sales returns and allowances for the month of November 2022 amount to $52,000 and $9,000, respectively.
For Tammy Company, sales (all on credit) and sales returns and allowances for the month of November 2022 amount to $52,000 and $9,000, respectively. The trial balance before adjustments at December 31, 2022, shows the following balances: Accounts receivable Allowance for doubtful accounts Sales (all on credit) Sales returns and allowances Dr. $97,000 3,250 8,700 Cr. 520,000 Required: Using the data above, give the journal entries required to record each of the following (each situation is independent): (a). Tammy Company performs an aging analysis at December 31, 2022, which indicates an uncollectible accounts estimate of $7,000. (c). Under the percentage-of-receivables approach as at December 31, 2022, the company wants to maintain Allowance for Doubtful Accounts at 4% of gross accounts receivable. (d). To obtain additional cash, Tammy Company factors, without recourse, $25,000 of accounts receivable to Laura Finance. The finance charge is 10% of the amount factored (please ignore AFDA and assume no expected uncollectible in the Accounts receivables being transferred.)
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a To record the aging analysis estimate of uncollectible accounts Debit Bad ...Get Instant Access to Expert-Tailored Solutions
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