1. Use the Allowance Method for the following transactions: For the month of December, ABC has an Accounts Receivable of $250,000 and an Allowance for Doubtful Accounts of $2000. Prepare the journal entry required, if the adjusting entry is based on 3% of accounts receivable.

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2. The LNMOP company has an Accounts Receivable balance of $200,000. The Allowance for Doubtful Accounts has a balance of $2000.

Given the following aging schedule journalize the adjusting entry for doubtful accounts.

1-30 31-60 61-90 over 90

135,000 50,000 10,000 5,000

1% 4% 10% 50%

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3. Using the Allowance Method prepare the necessary journal entries

a) Write off uncollectible receivables in the amount of $1000.

b) $1000 that was previously written off has been collected.

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4. Find the interest accrued on a $10,000 note at 6% for 60 days.

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5. A loan in the amount of $200,000 with 12% interest was taken out on June 1^st.

a) Prepare the journal entry for the issuance of the Note Payable.

b) Prepare the journal entry for the issuance of the Note Receivable.

c) Calculate the interest amount for December 31.

d) Prepare the adjusting journal entry if this was a Note Payable. (Expense)

e) Prepare the adjusting journal entry if this was a Note Receivable. (Revenue)