Chapter 2

Question 1

Question 2

Question 3

Question 1 of 3 -/10 > View Policies Current Attempt in Progress Crane Co uses the percentage of sales approach to record bad debt expense. It estimates that 1.5% of net credit sales will become uncollectible. Credit sales are $676.000 for the year ended April 30, 2021. sales discounts are $15,000; accounts recevable are $235.600; and the allowance for doubtful accounts has a credit balance of 54,560, Prepare the adjusting entry to record bad debt expense in 2021. (Credit account titles are outomatically indented when the amount is entered. Do not indent manually. I no entry is required, select "No Entry" for the account titles and enter for the amounts.) Debit Credit Date Account Titles and Explanation Apr 30 [To record estimate of uncollectible accounts.) List of Accounts List of Accounts Calculate the carrying amount of accounts receivable on April 30, 2021 Carrying amount $ List of Accounts Attempts: 0 of 3 used Submit Answer Save for Later Question 2 of 3 - / 15 View Policies Current Attempt in Progress Information on Crane Company for 2021 follows: $1.180,000 Total credit sales Accounts receivable at December 31 47.200 Uncollectible accounts written off 13,500 Amount collected on accounts previously written off (after write off but before year end) 2,800 Assume that Crane Company decides to estimate its uncollectible accounts using the allowance method and an aging schedule. Uncollectible accounts are estimated to be $23,000. What amount of bad debt expense will Crane Company record if Allowance for Doubtful Accounts had an opening balance of $14,500 on January 1, 2021? Bad debt expense $ Assume that Crane Company decides to estimate its uncollectible accounts using the allowance method and estimates its bad debt expense at 3.15% of credit sales. What amount of bad debt expense will Crane Company record if Allowance for Doubtful Accounts had an opening balance of $14,500 on January 1, 2021? Bad debt expense $ Assume the same facts as in part (a) except that the Allowance for Doubtful Accounts had a $8,300 balance on January 1, 2021 What amount of bad debt expense will Crane record on December 31, 2021 Bad debt expense Attempts: 0 of 3 used Submit Answer Save for Later Question 3 of 3 -/15 E View Policies Current Attempt in Progress The following are notes receivable transactions for Wildhorse Co. May 1 Received a $20,000, six month, 6% note from Joux Comparw in settlement of an account receivable. Interest is due at maturity June 30 Accrued interest on the Joux note, at Wildhorse's year end. Adjustments are recorded annually Lent $1,200 cash to an employee, Noreen Irvine, receiving a two-month, 5% note Interest is due at the end of each July 31 month Aug 31 Received the interest due from Ms. Irvine, Sept 30 Received payment in full from Ms. Irvine. Nov. 1 Jioux Company defaulted on its note Wildhorse does not expect to collect on the note. Record the transactions for Wildhorse Co. Wildhorse Couses only one allowance account for both accounts and notes receivable. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter o for the amounts. Round answers to 0 decimal places, eg. 5,276. Record journal entries in the order presented in the problem.) Question 3 of 3 -/15 Date Account Titles and Explanation Debit Credit (Accept note for accounts receivable (To accrue interest earned.) (Loan cash in exchange for note.) (Collect interest earned.) (To record collection of note receivable and interest.) . (To record dishonouring of note where collection is not expected) Attempts: 0 of 3 used Submit Answer Save for Later