2. At December 31, 2022, Terminal Enterprises owns the following assets: 1. Cash in bank savings account at BMO $7,400 2. Cash floats for cash registers $3,300 3. Cash refund due (overpayment of income taxes) $3,600 4. A cheque from Priority Inc for $2,000 that had been deposited on December 20, but was returned NSF on December 29. The cheque was to be re-deposited on January 3, 2023 The original deposit has been included in the December 28 deposit. 5. Chequing account balance at BMO in an overdraft of ($6,200) 6. A cheque for $2,500 from Alliance Ltd. received December 30, 2022, which was not deposited until January 2, 2023. 7. A $4,000 money-market mutual fund with chequing account privileges was shown as a short term investment on the balance sheet. 8. A post dated cheque in the amount of $2,500 dated January 5, 2023. 9. Cash in foreign bank (Canadian dollar equivalent) $21,000 10. Ten petty cash accounts with a balance of $300 each. Required: Calculate the amount that should be shown as cash and cash equivalents on the Balance Sheet under IFRS. Show your work. Part B (12 minutes, 7 marks) 1. When a customer account is recognized as uncollectible and written off, under the allowance method a. it is always debited to Bad Debt Expense. b. it may be debited to Bad Debts Expense if the amount is immaterial. C. it is only debited to Allowance for Doubtful Accounts under IFRS. d. it is always debited to Allowance for Doubtful Accounts 2. Campbell Enterprises had record sales in 2022. It began 2022 with an Accounts Receivable balance of $420,000 and an Allowance for Doubtful Accounts of $33,200. Campbell recognized credit sales during the year of $3,521,500 and made monthly adjusting entries equal to 0.5% of each month's credit sales to recognize bad debt expense. Also during the year the company wrote off $29,185 of accounts that were deemed to be uncollectible, although one customer whose $1,900 account had been written off surprised management by paying the amount in full in late September. Including this surprise receipt, $2,754,190 cash was collected on account in 2022. In preparation for the audited year-end financial statements, the controller prepared the following aging listing of the receivables at December 31, 2022: Balance Percentage estimated to be uncollectible 0-30 days outstanding $649,025 3% 31-60 days outstanding $382,500 12% 61-90 days outstanding $ 98,250 16% Over 90 days outstanding $30,250 20% Instructions: Prepare a schedule calculating the balance in Campbell's Allowance for Doubtful Accounts at December 31, 2022. Prepare any necessary journal entry at year end to adjust the allowance for doubtful accounts to the required balance. 0-30 days outstanding 31-60 days outstanding 61-90 days outstanding Over 90 days outstanding + Part C (13 minutes, 7 marks) 1. Christmas. Corp. has sold goods at terms 2/10, n/30. If the discount is not taken, the customer's amount payable is $8,725. Assuming Christmas uses the net metho], the entry to record the sale is a) a debit and credit of $7,852.50 to both Accounts Receivable and Sales respectively. b) a debit and credit of $8,550.50 to Accounts Receivable and Sales respectively. c) a debit and credit of $8,725 to Accounts Receivable and Sales respectively. d) debits of $8,550.50 and $49.50 to Accounts Receivable and "Forfeited Sales Discounts" respectively, and a credit to Sales for the total. 2. On December 31, 2022 Dexter Inc. provided service to Municipal, accepting a five percent, four-year promissory note having a maturity value of $600,000 (interest payable annually on December 31). Dexter pays 6 percent for its borrowed funds. Municipal, however, who has experienced financial difficulty in the current market conditions and is considered a higher risk, pays 8 percent for its borrowed funds. Instructions (a) Prepare the journal entries to record the transaction on the books of Dexter Inc. at December 31, 2022. (Assume that the effective interest method is used.) Tables are provided at the end of the exam. (b) Make all appropriate entries for 2023 on the books of Dexter Inc.