At year-end (December 31), Chan Company estimates its bad debts as 0.50% of its annual credit sales of $949,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $475 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off. Prepare Chan's journal entries for the transactions. View transaction list Journal entry worksheet Year 1 Dec. 16 Accepted a $15,000, 60-day, 6% note in granting Danny Todd a time extension on his past-due account receivable. 31 Made an adjusting entry to record the accrued interest on the Todd note. Year 2 Feb. 14 Received Todd's payment of principal and interest on the note dated December 16. Mar. 2 Accepted a(n) $6,900, 6%, 90-day note in granting a time extension on the past-due account receivable from Midnight co. 17 Accepted a(n) $3,200, 30-day, 7% note in granting Ava Privet a time extension on her past-due account receivable Apr. 16 Privet dishonored her note. May Co. dishonored its note. Aug. 7 a(n) $8,800, 90-day, 11% note in granting a time extension on the past-due account receivable of Mulan Sep. 3 Accepted a(n) $2,340, 60-day, 12% note in granting Noah Carson a time extension on his past-due account receivable Nov. 2 Received payment of principal plus interest from Carson for the September 3 note. Nov. 5 Received payment of principal plus interest from Mulan for the August 7 note. Dec. 1 Wrote off the Privet account against the Allowance for Doubtful Accounts. 31 Mulan Co. Required: 1-a. First, complete the table below to calculate the interest amount at December 31, Year 1. 1-b. Use the calculated value to prepare your journal entries for Year 1 transactions. 1-c. First, complete the table below to calculate the interest amounts. Journal entry worksheet Record the estimated bad debts expense. Note: Enter debits before credits. General Journal Debit Credit Date Dec 31 Record entry Clear entry View general journal Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 10 Required 1D Required 2 First, complete the table below to calculate the interest amount at December 31, Year 1. Total Through Maturity Interest Recognized December 31 Principal Rate (%) Time Total interest Journal entry worksheet Accepted a $15,000, 60-day, 6% note in granting Danny Todd a time extension on his past-due account receivable. Note: Enter debits before credits. General Journal Debit Credit Date Dec 16 Record entry Clear entry View general journal First, complete the table below to calculate the interest amounts. (Do not round intermediate calculations Total Through Maturity Midnight Co. A. Privet Note - Mulan Note - N. Carson Note Note - March 2, March 17, Year August 7, Year - September 3, Year 2 2 2 2017 Principal Rate(%) Time Total interest Journal entry worksheet 1 2 3 4 5 6 7 8 9 10 > Received Todd's payment of principal and interest on the note dated December 16. Note: Enter debits before credits. General Journal Debit Credit Date Feb 14 If Ohlm pledged its receivables as security for a loan from the bank, where on the financial statements does it disclose this pledge of receivables? SC The pledge of receivables is shown in the Scree! Show
