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The following information is available for Quality Book Sales' sales on account and accounts receivable: Accounts receivable balance, January 1, Year 2 Allowance for doubtful accounts, January 1, Year 2 Sales on account, Year 2 Collection on accounts receivable, Year 2 $ 78,800 4,770 553,000 559,000 After several collection attempts, Quality Book Sales wrote off $2,720 of accounts that could not be collected. Quality Book Sales estimates that 5 percent of the ending accounts receivable balance will be uncollectible. Required a. Compute the following amounts: (1) Using the allowance method, the amount of uncollectible accounts expense for Year 2. (2) Net realizable value of receivables at the end of Year 2. Amount of uncollectible accounts Net realizable value $ 27,650 $ 40,380 b. Record the general journal entries to: (1) Record sales on account for Year 2. (2) Record cash collections from accounts receivable for Year 2. (3) Write off the accounts that are not collectible. (4) Record the estimated uncollectible accounts expense for Year 2. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Rainey Enterprises loaned $35,000 to Small Company on June 1, Year 1, for one year at 6 percent interest. Required a. Record these general journal entries for Rainey Enterprises: (1) The loan to Small Company. (2) The adjusting entry at December 31, Year 1. (3) The adjusting entry and collection of the note on June 1, Year 2. b. Show the effects of the three given transactions in a horizontal statements model. Complete this question by entering your answers in the tabs below. Required A Required B Show the effects of the three given transactions in a horizontal statements model. (In the Statement of Cash Flows column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity, and leave blank to indicate the element is not affected by the event. Enter any decreases to account balances and cash outflows with a minus sign. Round your final answers to the nearest whole dollar.) Show less Income Statement Assets Event Balance Sheet Stockholders Equity * ained RE This is a numeric cell, so please nings enter numbers only. Statement of Cash Flows Revenue Net Income Expenses Cash Notes Receivable 6/1/Y1 (35,000) + 35,000 + (35,000) IA 12/31/41 + + 1.225 1,225 = 1.225 875 + 1,225 = 1,225) = (1.225) + 875 875 - 6/1/Y2 6/1/Y2 = 37,100 + (35,000) + 37.100 (1,225) IA + =
