1)At December 31, Gill Company reported accounts receivable of $265,000 and an allowance for uncollectible accounts of $1,250 (credit) before adjustment. An analysis of accounts receivable suggests that the allowance for uncollectible accounts should be 2% of accounts receivable. The amount of the adjusting entry for uncollectible accounts would be:

2)On September 1, 2024, Middleton Corporation lends cash and accepts a $3,700 note receivable that offers 7% interest and is due in six months. How much interest revenue will Middleton Corporation report during 2024? (Do not round intermediate calculations. Round your answer to the nearest dollar amount.)

3)When $2,500 of accounts receivable are determined to be uncollectible, which of the following should the company record to write off the accounts using the allowance method?

Multiple Choice

• A debit to Bad Debt Expense and a credit to Accounts Receivable

• A debit to Allowance for Uncollectible Accounts and a credit to Accounts Receivable

• A debit to Allowance for Uncollectible Accounts and a credit to Bad Debt Expense

• A debit to Bad Debt Expense and a credit to Allowance for Uncollectible Accounts