1.) During the period, Juanita's Grocery Store wrote off an uncollectible accounts receivable of $300. Juanita uses the allowance method to account for bad debts. What journal entry did Juanita record?
| A. debit Bad Debt Expense $300 and credit Accounts Receivable $300 |
| | B. debit Accounts Receivable $300 and credit Cash $300 |
| | C. debit Allowance for Doubtful Accounts $300 and credit Bad Debt Expense $300 |
| | D. debit Allowance for Doubtful Accounts and credit Accounts Receivable $300 |
2.) On October 1, Sylvester Company received a $10,000, 6-month, 8% note from Hyland Company. What amount of interest revenue does Sylvester record at December 31?
3.) Net credit sales for the month are $600,000. The accounts receivable balance is $150,000. The allowance is calculated as 6% of the receivables balance using the percentage-of-receivables basis. If Allowance for Doubtful Accounts has a credit balance of $4,000 before any adjustment, what is the balance after adjustment in the Allowance for Doubtful Accounts?
4.) In 2015, Papa's Company had net credit sales of $650,000. On January 1, 2015, Allowance for Doubtful Accounts had a credit balance of $20,000. During 2015, $32,000 of uncollectible accounts receivable were written off. Past experience indicates that the allowance should be 8% of the balance in receivables. If the accounts receivable balance at December 31 was $220,000, what is the amount of the entry to record bad debt expense for the period?
