3. Caplan Corporation uses the accounts receivable aging method to account for Uncollectible Accounts Expense. As of December 31, Caplan's accountant prepared the following data about ending receivables: $20,000 was not yet due (1 percent expected not to be collected) $10,000 was 1-60 days past due (4 percent expected not to be collected), and $2,000 was over 60 days past due (8 percent expected not to be collected). At December 31, Allowance for Uncollectible Accounts had a credit balance prior to adjustment of $200. In the journal provided, prepare Caplan's end- of-period adjustment for estimated uncollectible accounts. Also prepare the entry that would have been made had the credil balance instead been a debit balance. Date General Journal Description Debit Page Credit Post Ref. 4. In the journal provided, prepare the entries for the following transactions. (Omit explanations.) Dec. 1 Sold merchandise on account to Katurah Wells for $600. 12 Received payment of $400 from Katurah Wells. 31 Made adjusting entry for Uncollectible Accounts Expense, using the percentage of net sales method. Net sales for the year totaled $14.000, uncollectible accounts are estimated at 2 percent, and Allowance for Uncollectible Accounts has a $50 credit balance prior to adjustment Feb. 5 Wrote off Katurah Wells's balance because she filed for bankruptcy. Date General Journal Description Page 1 Credit Debit Post. Ref. 5. On December 1, 2018, Boston Pizza Wholesale Supply received a $40,000.90-day, 15 percent promissory note (note receivable) from one of its customers. Interest is in addition to the face value. The customer made all payments when they were due. Provide the following information. Maturity Date Maturity Value Interest income in 2018 Cash received in 2018 Interest income in 2019 Cash received in 2019 6. On January 2, 2017, Topanga Company purchased a machine for $90,000. The machine has a five-year estimated useful life and a $6,000 estimated residual value. In addition, the company expects to use the machine 20.000 hours. Assuming that the machine was used 3,500 hours during 2018, complete the following chart. If a figure cannot be determined, indicate so by placing an X in the box. (Show your work.) Method Depreciation Expense for 2018 Carrying Value at 12/31/18 Straight-line Production Double-declining-balance 7. On January 1, 2017. North Side Manufacturing Company purchased for $40.000 a machine that will produce an estimated 75.000 units of Product X. The machine has an estimated useful life of four years and an estimated residual value of $8,000. Calculate the following amounts, rounding answers to the nearest dollar: (a) the carrying value of the machine after it has been used for three and one-half years, under the straight-line method: (b) depreciation expense for 2019, under the production method (assume that 13.000 units were produced that year); and (c) accumulated depreciation at the end of 2018, under the double-declining-balance method. (Show your work.)
