Adjustment for Uncollectible Accounts Kirchhoff Industries has computed that the proper balance for the Allowance for Doubtful Accounts at August 31 is $95,312. Assume that the allowance for doubtful accounts for Kirchhoff Industries has a credit balance of $20,015 before adjustment on August 31. Journalize the adjusting entry for uncollectible accounts as of August 31. If an amount box does not require an entry, leave it blank. Aug. 31 38 Estimating Doubtful Accounts Performance Bike Co. is a wholesaler of motorcycle supplies. An aging of the company's accounts receivable on December 31 and a historical analysis of the percentage of uncollectible accounts in each age category are as follows: Estimate the proper balance of the allowance for doubtful accounts should be as of December 31. Performance Bike Co. Estimation of Uncollectible Accounts December 31 Estimated Uncollectible Age Interval Balance Accounts Percent Not past due $514,000 3/4% 1-30 days past due 56,500 2 31-60 days past due 25,700 7 61-90 days past due 18,500 18 91-180 days past due 13,400 40 Over 180 days past due 9,800 00 Total $637,900 Estimated Uncollectible Accounts Amount Entry for Uncollectible Accounts Performance Bike Co. has determined that the proper balance for the Allowance for Doubtful Accounts at December 31 is $39,458. Assume that the allowance for doubtful accounts for Performance Bike Co. had a debit balance of $7,100 as of December 31. Journalize the adjusting entry for uncollectible accounts as of December 31. If an amount box does not require an entry, leave it blank. Dec. 31 88 Effect of Doubtful Accounts on Net Income During its first year of operations, Mack's Plumbing Supply Co. had sales of $520,000, wrote off $8,000 of accounts as uncollectible using the direct write-off method, and reported net income of $57,200. Assume that during the second year of operations, Mack's Plumbing Supply Co. had sales of $624,000, wrote off $9,600 of accounts as uncollectible using the direct write-off method, and reported net income of $62,300. a. Determine what net income would have been in the second year if the allowance method (using 1-3/4% of sales) had been used in both the first and second years b. Determine what the balance of the allowance for doubtful accounts would have been at the end of the second year if the allowance method had been used in both the first and second years. Entries for Bed Debt Expense under the Direct Write-Off and Allowance Methods Casebot Company wrote off the following accounts receivable as uncollectible for the first year of its operations ending December 31: Customer Shawn Brooks Eve Denton Art Malloy Cassie Yet Total Amount $16,100 15,000 20,400 3,900 $55,400 aurate the write-offs under the direct write-off method. If oes not require an entry, leave it blank b. Sournalas the write-offs under the slowance method Aise, jounalue the austing entry for unclexible accounts. The company recorded $3,770,000 of credit sales during the year Sased on past history and industry averages, 1 3/4% of credit sales are expected to be uncollectible. If an amount box does not revine an entry, leave it blank mals the write off under the allowance method. A journalize the adjusting entry for uncollectible accounts. The company recorded $3,770,000 of credit sales c dustry averages, 1 3/4% of oedt sales are expected to be uncollectible. If an amount box does not require an entry leave it blank year Based on past history and Adjustment ow much higher lower) would Casebot Company's net income have been under the direct write-off method by method Entries for Notes Receivable Autumn Designs & Decorators issued a 120-day, 8% note for $42,000, dated April 13 to Zebra Furniture Company on account. Assume a 360-day year when calculating interest. a. Determine the due date of the note b. Determine the maturity value of the note. c1. Journalize the entry to record the receipt of the note by Zebra Furniture. If an amount box does not require an entry, leave it blank. 88 c2. Journalize the entry to record the receipt of payment of the note at maturity. If an amount box does not require an entry, leave it blank