For Tammy Company, sales (all on credit) and sales returns and allowances for the month of...
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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. 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.) 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 ... View the full answer
Related Book For
Financial Accounting A User Perspective
ISBN: 978-0470676608
6th Canadian Edition
Authors: Robert E Hoskin, Maureen R Fizzell, Donald C Cherry
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