1. Compute the missing amount for each of the following notes: Principal Annual Interest Rate Time Total Interest (a) $40,000 10% 2.5 years ? (b) $120,000 ? 9 months $7,200 (c) 2 10% 90 days $1,500 (d) $40,000 9% ? $1,200 2. Avett Furniture Store has credit sales of $400,000 in 2018 and a debit balance of $600 in the Allowance for Doubtful Accounts at year end. As of December 31, 2018, $130,000 of accounts receivable remain uncollected. The credit manager prepared an aging schedule of accounts receivable and estimates that $7,000 will prove to be uncollectible. On March 4, 2019, the credit manager authorizes a write-off of the $1,200 balance owed by B. Fernitti. Instructions (a) Prepare the adjusting entry to record the estimated uncollectible accounts expense in 2018. (b) Show the balance sheet presentation of accounts receivable on December 31, 2018 (c) On March 4, before the write-off, assume the balance of Accounts Receivable account is $160,000 and the balance of Allowance for Doubtful Accounts is a credit of $3,000. Make the appropriate entry to record the write-off of the Fernetti account. Also show the balance sheet presentation of accounts receivable before and after the write-off. 3. Fleming Sign Company uses the allowance method in accounting for uncollectible accounts. Past experience indicates that 6% of accounts receivable will eventually be uncollectible. Selected account balances at December 31, 2017, and December 31, 2018, appear below: 12/31/17 12/31/18 Net Credit Sales $400,000 $500,000 Accounts Receivable 60,000 80,000 Allowance for Doubtful Accounts 5,200 ? Instructions (a) Record the following events in 2018. Aug. 10 Determined that the account of Sue King for $800 is uncollectible. Sept. 12 Determined that the account of Tom Young for $3,700 is uncollectible Oct 10 Received a check for $500 as payment on account from Sue King, whose account had previously been written off as uncollectible. She Indicated the remainder of her account would be paid in November Nov. 15 Received a check for $300 from Sue King as payment on her account (b) Prepare the adjusting journal entry to record the bad debt provision for the year ended December 31 2018 (c) What is the balance of Allowance for Doubtful Accounts at December 31, 2018