5. Ansel Co. uses the allowance method of accounting for uncollectibles. On March 30, 20XX, Ansel deemed that an amount of $12,000 due from Kim Bright was uncollectible. Prepare the journal entry to write off the account on March 31.

6. Using the information in 5 above, on June 1, 20XX, Bright informed Ansel that he would pay the debt owed. Bright paid the $12,000 on June 4. Prepare a journal entry to reinstate the account on June 1, and to record the cash received on June 4.

Using the basic formula for interest, and assuming the Bankers rule (360 day year) is used, compute the interest only on the following notes:

7. $7,000 at 3.5% for 90 days.

Using the Exact Interest rule, compute the interest on only the following note:

$15,000 for 60 days at 7%. (round to the nearest cent)

8. OLeary Co. received a 180-day, 10% note for $6,200 from a customer, Don Dudek, in settlement of Dudeks account receivable. Please prepare an appropriate journal entry to record this transaction. Be sure to include a date and an appropriate footnote.