2 At December 31, 2018 the trail balance of Winn Co contained the following account balances: Accounts Receivable $280,000, Allowance for Doubtful Accounts $1,300Cr, Sales $910,000 Cr. Prepare the adjusting entries at December 31, 2018 to record bad debts expense under each of the following independent assumptions (4 Entries Total, 2 for A & 2 for B) A. An aging schedule that indicates $32,140 of accounts receivable will be uncollectible B. The company estimates that 4% of net sales will be uncollectible Repeat part A & B assuming that the balance of the Allowance for Uncollectible Accounts at December 31, 2018 was a debit balance of $2,200. Problem 3 Prepare the journal entries for Hawke Company. Use the allowance method where needed. Jan 6 Feb 6 26 Feb 7 Feb 20 Apr Apr 20 May Sold $3000 of merchandise to Bennett Company, terms n/30 days. Accepted a $3,000 60-day 8% promissory note from Bennett Company for the balance due. Wrote off the Dell receivable account $1,400. Sold merchandise to MSK Inc. For $9,000 60-day, 11% note. Collected the Bennet note in full. MSK Inc. Defaulted on there note. It is expected that MSK will pay. Received money from Dell in full payment of his previously written off account. Required: Prepare the Journal Entries for the Above Transactions. BONUS QUESTIONS 1. What type of account is the allowance for doubtful accounts? 2. What is an aging of accounts receivable? 3. What does FOB stand for? 4. What is the difference between a sales return and a sales allowance? 5. What are you doing for your winter break? Problem 2 At December 31, 2018 the trail balance of Winn Co contained the following account balances: Accounts Receivable $280,000, Allowance for Doubtful Accounts $1,300Cr, Sales $910,000 Cr. Prepare the adjusting entries at December 31, 2018 to record bad debts expense under each of the following independent assumptions (4 Entries Total, 2 for A & 2 for B) A. An aging schedule that indicates $32,140 of accounts receivable will be uncollectible B. The company estimates that 4% of net sales will be uncollectible Repeat part A&B assuming that the balance of the Allowance for Uncollectible Accounts at December 31, 2018 was a debit balance of $2,200. Problem 3 Prepare the journal entries for Hawke Company. Use the allowance method where needed. Jan 6 Sold $3000 of merchandise to Bennett Company, terms n/30 days Feb 6 20 Feb Feb 20 Apr 6 Apr 20 May 1 Accepted a $3,000 60-day 8% promissory note from Bennett Company for the balance due. Wrote off the Dell receivable account $1,400 Sold merchandise to MSK Inc. For $9,000 60-day, 11% note. Collected the Bennet note in full. MSK Inc. Defaulted on there note. It is expected that MSK will pay Received money from Dell in full payment of his previously written off account Required: Prepare the Journal Entries for the Above Transactions