(1)Assume that Simple Co. had credit sales of $252,000 and cost of goods sold of $152,000 for the period. Simple uses the aging method and estimates that the appropriate ending balance in the Allowance for Doubtful Accounts is $3,200. Before the end-of-period adjustment is made, the Allowance for Doubtful Accounts has a credit balance of $270.

What amount of Bad Debt Expense would the company record as an end-of-period adjustment?

(2) Nova Corporation hired a new product manager and agreed to provide her a $21,000 relocation loan on a six-month, 6 percent note.

(a) The company loans the money on January 1. (b)The new employee pays Nova the interest owed on the maturity date.

(c)The new employee pays Nova the full principal owed on the maturity date.

Prepare journal entries to record the above transactions for Nova Corporation. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.)

(3) Terracotta, Inc. reported the following accounts and amounts (in millions) in its financial statements for the year ended November 30, 2013.

Accounts Payable$740Accounts Receivable650Accumulated Amortization470Accumulated Depreciation810Allowance for Doubtful Accounts30Cash and Cash Equivalents850Equipment5,155Income Taxes Payable30Notes Payable (long-term)1,700Notes Payable (short-term)25Notes Receivable (long-term)230Prepaid Rent290Retained Earnings7,130Service Revenue470Short-term Investments2,540Software625Unearned Revenue800

Prepare the current assets section of its balance sheet. The Allowance for Doubtful Accounts relates entirely to Accounts Receivable. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)