BAC 121- PURPOSES OF ACCOUNTING PROBLEM SET #4 QUESTION 4 (Receiva bles) At December 31, Hallmark Ltd. estimates that 5% of total accounts receivable will become uncollectible. Accounts receivable are $40,000 at the end of the year. Allowance for Doubtful Accounts has a balance of $500 prior to recording any year-end adjusting entries. Calculate the amount of adjustment to the AFDA account BAC 121- PURPOSES OF ACCOUNTING PROBLEM SET # 4 QUESTION 5 (Receivables) Montreal Bank issued a 3 %, $100,000 note receivable to a customer on January 1, 2018. Interest is payable the first day of each month starting February 1, 2018. Interest were paid on time Explain impacts on financial statements at issuance and during the first tow month (January and February 2018). The company adjusts its account each month DATE ACCOUNTS BAC 121- PURPOSES OF ACCOUNTING PROBLEM SET #4 QUESTION 4 (Receiva bles) At December 31, Hallmark Ltd. estimates that 5% of total accounts receivable will become uncollectible. Accounts receivable are $40,000 at the end of the year. Allowance for Doubtful Accounts has a balance of $500 prior to recording any year-end adjusting entries. Calculate the amount of adjustment to the AFDA account BAC 121- PURPOSES OF ACCOUNTING PROBLEM SET # 4 QUESTION 5 (Receivables) Montreal Bank issued a 3 %, $100,000 note receivable to a customer on January 1, 2018. Interest is payable the first day of each month starting February 1, 2018. Interest were paid on time Explain impacts on financial statements at issuance and during the first tow month (January and February 2018). The company adjusts its account each month DATE ACCOUNTS