Analyzing Accounts and Notes Receivable; Computing Interest, Estimating Value, and Recording Bad Debts Analyze each of the four separate scenarios and answer the requirements Note: Round each of your answers to the nearest whole dollar, 1. On December 31, 2020, Helena Company, a California real estate firm, received two 58,000 notes from customers in exchange for services rendered. The 8% note from El Dorado Company is due in nine months, and the 3% no Note recewable, El Dorado Company $ Note recevabile, Newcastle Company 2. EPPA, an environmental management firm, issued to Dara, a $4,000,8%, five-year installment note that required five equal annual year-end payments. This note was discounted to yield a 9% rate to Dara. What is the total amu Total interest revenue 3 3. On July 1, 2020, Lezix Company, a maker of denim clothing sold goods in exchange for a $40,000, one-year, noninterest-bearing note. At the time of the sale, the market rate of interest was 12% on similar notes. At what amour Note recevables 4. The records of Quest Company included the following accounts (with normal balances). Cash sales S480.000 Creclit sales 360.000 Balance in accounts receivable, December 31, 2019 72.000 Balance in accounts receivable, Drcember 31, 2020 80.000 Balance in allowance for daubtful accounts, December 31, 2019 (Cr.) 1,200 Accounts written off as uncollectible during 2020 2.000 The company estimates bad debts as 2% of receivables at year-end to be uncollectible. Prepare the adjusting entry at December 31, 2020, to adjust the allowance for doubtful accounts. Account Name Dr. Cr. Date Dec 31, 2020 Analyzing Accounts and Notes Receivable; Computing Interest, Estimating Value, and Recording Bad Debts Analyze each of the four separate scenarios and answer the requirements Note: Round each of your answers to the nearest whole dollar, 1. On December 31, 2020, Helena Company, a California real estate firm, received two 58,000 notes from customers in exchange for services rendered. The 8% note from El Dorado Company is due in nine months, and the 3% no Note recewable, El Dorado Company $ Note recevabile, Newcastle Company 2. EPPA, an environmental management firm, issued to Dara, a $4,000,8%, five-year installment note that required five equal annual year-end payments. This note was discounted to yield a 9% rate to Dara. What is the total amu Total interest revenue 3 3. On July 1, 2020, Lezix Company, a maker of denim clothing sold goods in exchange for a $40,000, one-year, noninterest-bearing note. At the time of the sale, the market rate of interest was 12% on similar notes. At what amour Note recevables 4. The records of Quest Company included the following accounts (with normal balances). Cash sales S480.000 Creclit sales 360.000 Balance in accounts receivable, December 31, 2019 72.000 Balance in accounts receivable, Drcember 31, 2020 80.000 Balance in allowance for daubtful accounts, December 31, 2019 (Cr.) 1,200 Accounts written off as uncollectible during 2020 2.000 The company estimates bad debts as 2% of receivables at year-end to be uncollectible. Prepare the adjusting entry at December 31, 2020, to adjust the allowance for doubtful accounts. Account Name Dr. Cr. Date Dec 31, 2020
