Accounting Questions

Note: Please follow all rounding rules stated in questions AND use the list of accounts below to answer Question 7 and 8

List of Accounts

• Accounts Payable
• Accounts Receivable
• Accrued Liabilities
• Accumulated Depreciation - Equipment
• Advances to Employees
• Advertising Expense
• Allowance for Doubtful Accounts
• Allowance for Sales Returns and Allowances
• Bad Debt Expense
• Bank Charges Expense
• Cash
• Cash Over and Short
• Due from Factor
• Entertainment Expense
• Equipment
• Finance Expense
• Finance Revenue
• Freight in
• Freight out
• Gain on Disposal of Equipment
• Gain on Disposal of Land
• Interest Expense
• Interest Income
• Interest Receivable
• Inventory
• Land
• Loss on Disposal of Equipment
• Loss on Disposal of Land
• Loss on Disposal of Receivables
• Loss on Impairment
• Miscellaneous Expense
• No Entry
• Notes Payable
• Notes Receivable
• Office Expense
• Petty Cash
• Postage Expense
• Prepaid Expenses
• Purchase Discounts
• Recourse Liability
• Refund Liability
• Rent Expense
• Sales Discounts
• Sales Discounts Forfeited
• Sales Returns and Allowances
• Sales Revenue
• Servicing Liability
• Service Revenue
• Supplies
• Supplies Expense
• Unearned Revenue

Question 7: Refer to ACCT Q7.png

The following information was taken from the accounts receivable records of Sarasota Corporation as at December 31, 2020: Outstanding Percentage Estimated Balance to be Uncollectible 0 - 30 days outstanding $160,000 0.5% 31 - 60 days outstanding 66,000 2.59% 61 - 90 days outstanding 40.200 4.0% 91 - 120 days outstanding 20.600 6.5% Over 120 days outstanding 5,600 10.0% (a) Prepare the year-end adjusting entry for bad debt expense, assuming allowance for doubtful accounts had a credit balance of $1,200 prior to the adjustment. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit (b) Prepare the year-end adjusting entry for bad debt expense, assuming allowance for doubtful accounts had a debit balance of $3,880 prior to the adjustment. (Round answers to O decimal places, e.g. 8,971. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit CreditRecord all entries associated with the note receivable for the first year of the note. (Credit account titles are automaticall indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and e the amounts. Record journal entries in the order presented in the problem. Round answers to O decimal places, e.g. 8,971.) Account Titles and Explanation Debit Cr Assistance How will the accounts used in the transactions in part b. be reported on the statement of comprehensive income and th statement of financial position. Statement of comprehensive income: Statement of financial position: S