1. Philadelphia Company's ledger at the end of the current year shows Accounts Receivable of $150,000. (2 marks) Instructions a. If Allowance for Doubtful Accounts has a credit balance of $3,000 in the trial balance and bad debts are expected to be 4% of accounts receivable, journalize the adjusting entry for the end of the period. b. If Allowance for Doubtful Accounts has a debit balance of $3,000 in the trial balance and bad debts are expected to be 4% of accounts receivable, journalize the adjusting entry for the end of the period. Q2. The following data exists for Philadelphia Company. Accounts Receivable Net Sales 2014 $ 80,000 540,000 2013 $ 70,000 410,000 Calculate the receivables turnover ratio and the average collection period for accounts receivable in days for 2014. (2 marks) Q3. Prepare journal entries to record the following transactions entered into by Philadelphia Company: (6 marks) 2013 June 1 Received a $30,000, 8%, 1-year note from Ann Duff as full payment on her account. Nov. 1 Sold merchandise on account to Malone, Inc. for $18,000, terms 2/10, n/30. Nov. 5 Malone, Inc. returned merchandise worth $500. Nov. 9 Received payment in full from Malone, Inc. Dec. 31 Accrued interest on Duff's note. 2014 June 1 Ann Duff honored her promissory note by sending the face amount plus interest. No interest has been accrued in 2014. Q1. Philadelphia Company purchased a delivery truck for $50,000 on January 1, 2013. The truck was assigned an estimated useful life of 5 years and has a residual value of $10,000. Compute depreciation expense using the double- declining-balance method for the years 2013 and 2014. (2 marks) Q2. Philadelphia Company purchased a delivery truck for $50,000 on January 1, 2013. The truck was assigned an estimated useful life of 100,000 miles and has a residual value of $10,000. The truck was driven 18,000 miles in 2013 and 22,000 miles in 2014. Compute depreciation expense using the units-of-activity method for the years 2013 and 2014. (2 marks) Q3. On January 1, 2011, Philadelphia Company purchased a computer system for $30,500. The system had an estimated useful life of 5 years and no residual value. At January 1, 2013, the company revised the remaining useful life to two years. What amount of depreciation will be recorded for 2013 and 2014? (2 marks) Q4. Philadelphia Enterprises sold equipment on January 1, 2014 for 5,000. The equipment had cost 33,000. The balance in Accumulated Depreciation at January 1 is 30,000. What entry would Robot make to record the sale of the equipment? (4 marks)