3. At December 31, Hawke Company reports the following results for its calendar year.

Cash sales	$ 160,000
Credit sales	$ 400,000

In addition, its unadjusted trial balance includes the following items.

Accounts receivable	$ 120,000	debit
Allowance for doubtful accounts	$ 1,400	debit

3a. Bad debts are estimated to be 2% of credit sales. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet.

Current assets:
		$0

3b. An aging analysis estimates that 6% of year-end accounts receivable are uncollectible. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet.

Current assets:
		$0

4. [The following information applies to the questions displayed below.] On December 31, Jarden Company's Allowance for Doubtful Accounts has an unadjusted credit balance of $15,500. Jarden prepares a schedule of its December 31 accounts receivable by age.

Accounts Receivable	Age of Accounts Receivable	Expected Percent Uncollectible
$ 820,000	Not yet due	1.15%
328,000	1 to 30 days past due	1.90
65,600	31 to 60 days past due	6.40
32,800	61 to 90 days past due	32.25
13,120	Over 90 days past due	67.00

4a. Prepare the adjusting entry to record bad debts expense at December 31. (Round percentage answers to nearest whole percent. Do not round intermediate calculations.)

Date	General Journal	Debit	Credit
December 31	Bad debts expense
	Allowance for doubtful accounts

7. Liang Company began operations in Year 1. During its first two years, the company completed a number of transactions involving sales on credit, accounts receivable collections, and bad debts. These transactions are summarized as follows. Year 1

1. Sold $1,351,500 of merchandise on credit (that had cost $981,200), terms n/30.
2. Wrote off $21,300 of uncollectible accounts receivable.
3. Received $675,000 cash in payment of accounts receivable.
4. In adjusting the accounts on December 31, the company estimated that 1.80% of accounts receivable would be uncollectible.

Year 2

5. Sold $1,571,000 of merchandise (that had cost $1,347,000) on credit, terms n/30.
6. Wrote off $30,100 of uncollectible accounts receivable.
7. Received $1,223,000 cash in payment of accounts receivable.
8. In adjusting the accounts on December 31, the company estimated that 1.80% of accounts receivable would be uncollectible.

Required: Prepare journal entries to record Liangs Year 1 and Year 2 summarized transactions and its year-end adjustments to record bad debts expense. (The company uses the perpetual inventory system, and it applies the allowance method for its accounts receivable.) (Round your intermediate calculations to the nearest dollar.)

8. The following transactions are from Ohlm Company. (Use 360 days a year.) Year 1

December 16	Accepted a(n) $12,700, 60-day, 7% note in granting Danny Todd a time extension on his past-due account receivable.
December 31	Made an adjusting entry to record the accrued interest on the Todd note.

Year 2

February 14	Received Todds payment of principal and interest on the note dated December 16.
March 2	Accepted a(n) $7,200, 7%, 90-day note in granting a time extension on the past-due account receivable from Midnight Company.
March 17	Accepted a $2,200, 30-day, 7% note in granting Ava Privet a time extension on her past-due account receivable.
April 16	Privet dishonored her note.
May 31	Midnight Company dishonored its note.
August 7	Accepted a(n) $7,650, 90-day, 12% note in granting a time extension on the past-due account receivable of Mulan Company.
September 3	Accepted a $2,270, 60-day, 11% note in granting Noah Carson a time extension on his past-due account receivable.
November 2	Received payment of principal plus interest from Carson for the September 3 note.
November 5	Received payment of principal plus interest from Mulan for the August 7 note.
December 1	Wrote off the Privet account against the Allowance for Doubtful Accounts.

Required: 1-d. Use those calculated values to prepare your journal entries for Year 2 transactions.