The trial balance before adjustment for Martinez 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.)
For case (3.) Amount of allowance to be ($84700 x 7 / 100) = $5929 + $2700 debit balance = $8629
For case (4) Allowance to be made for ($6174 – $1041) = $5133