#2

1) The company had sales revenue $4,000,000 reported on its Income Statement. The company had an accounts receivable balance of $200,000 and an allowance for uncollectible accounts balance of $1,000 (credit) at the end of the year (before any adjusting entry). The accountant determined that 1% of the SALES REVENUE will ultimately be uncollectible. a) Prepare the journal entry to record Uncollectible Accounts expense for the year. debit Credit Account Name b) Fill in the amounts that would appear on the Balance Sheet after the above adjusting entry: Accounts receivable Less: allowance for uncollectible accounts Accounts receivable, net 2) On September 1, 2017, Blanton Plastics sold a product for $500,000 and the customer signed a note promising to pay Blanton Plastics back cash on March 1, 2018 along with 6 % interest due also on March 1, 2017. Remember the interest rate is an ANNUAL interest rate. Prepare the journal entries for the following two dates: September 1, 2017-SALE on Account (Note receivable) debit Credit Account Name December 31, 2017- YEAR END ADJUSTMENT Credit debit Account Name