A company makes the payment of a one-year insurance premium of $3,432 on March 1, 2019.

a-1. Use the horizontal model to record the above transaction.

b Use the horizontal model to show the amount of insurance premium "used" that month

c Calculate the amount of prepaid insurance that should be reported on the December 31, 2019, balance sheet with respect to this policy.

d If the premium had been $6,864 for a two-year period, how should the prepaid amount at December 31, 2019, be reported on the balance sheet?

e Prepaid expenses reflects as an asset for more meaningful net income amount.

Group startsTrue or False

3..

At the beginning of the year, accounts receivable were $149,000 and the allowance for bad debts was $12,000. During the year, sales (all on account) were $605,000, cash collections were $585,000, bad debts expense totaled $15,700, and $12,500 of accounts receivable were written off as bad debts.

Required:

Calculate the balances at the end of the year for the Accounts Receivable and Allowance for Bad Debts accounts. (Hint: Use T-accounts to analyze each of these accounts, plug in the amounts that you know, and solve for the ending balances.)

Balance Sheet Assets: Total current assets 0 Total assets $ 0 Liabilities: Total current liabilities 0 $ 0 Total liabilities Stockholders' Equity: 0 Total Stockholders' equity Total liabilities and stockholders' equity $ 0 Balance Sheet Assets: Total current assets 0 Total assets $ 0 Liabilities: Total current liabilities 0 $ 0 Total liabilities Stockholders' Equity: 0 Total Stockholders' equity Total liabilities and stockholders' equity $ 0