Actividad 2: Allowance for Doubtful Accounts The ledger of the Adler Company at the end of the current year (Dec 31, 20x1), shows Accounts Receivable of $350,000.

Instructions: Prepare the adjusting entries for Bad Debt expense at December 31, if

(a) Allowance for Doubtful Accounts has a credit balance of $4,000 in the trial balance and bad debts are expected to be 8% of accounts receivable.(Show all calculations.)

(b) Allowance for Doubtful Accounts has a debit balance of $6,000 in the trial balance and bad debts are expected to be 8% of accounts receivable. (Show all calculations.)

Actividad 3: Notes Receivable

20x1 May 1 Adler Company, received a $25,000, 1-year, 8% note in exchange for an outstanding account receivable from TM Frost.

Dec. 31 Accrued interest revenue on the TM Frost note.

20x2 May 1 Received principal plus interest on the TM Frost note.

Instructions:

3. Record the transactions in general journal.

4. Show calculations for: total interest revenues, adjusted interest ,and maturity value.