Baer Enterprise's balance sheet at October 31, 2008 (fiscal year-end) includes the following:

Transactions for fiscal year 2009 include the following:
1. Due to a product defect, previously sold merchandise totaling \($10,500\) was returned.
2. Customer accounts totaling \($29,750\) were written off during the year.
3. On November 1, 2008, Baer sold teleconferencing equipment and received a \($75,000\) noninterest-bearing note receivable due in three years. The normal cash selling price for the equipment is \($56,349\). Assume that the appropriate interest rate for this transaction is 10%.
4, Credit sales during the year were \($395,000;\) collections totaled \($355,000\) .
5.Baer sold Hartman, Inc. \($45,000\) of accounts receivable without recourse. Hartman’s fee for factoring receivables is 9%.
6. Utilizing the gross receivables approach, Baer determined that the 2009 fiscal year-end allowance for uncollectible accounts should be \($35,000\).
Required:
1. Prepare journal entries for each of these events. Also prepare the entry to accrue interest income on the note.
2. Show Baer’s balance sheet presentation for accounts and notes receivable at October 31, 2009.

Transcribed Image Text:

Accounts receivable Less: Allowance for uncollectible accounts Accounts receivable (net) $379,000 (33.000) $346,000