Choculator Enterprises sells chocolate bars shaped like calculators (reat protezy to math-minded consumers. Requirement 1: In the space below each item a-e, show the journal entry, if any, recorded by Choculator on the underlined date. SHOW ALL COMPUTATIONS. a. On January 1, 2018, Choculator sold merchandise to CPASRUs and received a 3-year noninterest-bearing $300,000 note. An appropriate discount rate was 12%. The effective interest method was used. Assume COGS has been recorded. b. On December 27, 2018. Choculator received payment for merchandise sold on account for $600,000, terms 2/10, net 30. The customer paid within the discount period. Choculator used the gross method for recording sales discounts. c. On December 31, 2018. Choculator recorded an adjusting entry for uncollectible accounts. The December 31, 2018, balance in accounts receivable was $1,200,000 (already adjusted for amount from item b). The balance in the allowance account prior to the adjusting entry was $36,000 (credit). Choculator estimated uncollectible accounts to be 8% of year-end accounts receivable. d.On December 31, 2018. Choculator applied the LCNRV rule and, if necessary, recorded an inventory write- down. Choculator has experienced inventory write-downs in the past. LCNRV is applied to total inventory. Ending inventory Ending inventory at at FIFO Cost_ Net realizable value Item #101 $100,000 $ 95,000 Item #102 80,000 90,000 Item #103 250.000 220,000 Part 1A, continued e. On December 31, 2018 Choculator recorded any other necessary adjusting entryies) for items a-d above. SHOW ALL COMPUTATIONS. Requirement 2: Choculator's preliminary 2018 net income was $300,000 without considering the entries in a-e. Determine the correct 2018 net income by adjusting this amount for amounts in items a-e, if any. Preliminary 2018 net income (ignore taxes) $300,000 a. b. c. d. e. Correct 2018 net income Requirement 3: Choculator's December 31, 2017, retained earnings balance was $800,000. Determine the December 31, 2018 retained earnings balance. Requirement 4: Complete the December 31, 2018 unclassified balance sheet for Choculator by including the (1) 12-31-18 ending balances in asset/contra-asset accounts found in items a-e (OTHER THAN CASH) (2) 12-31-18 retained earnings balance. Assume Cash and other amounts shown below are correct. ASSETS LIABILITIES AND STOCKHOLDERS' EQUITY Cash $150,000 Other liabilities $ 556,000 Stockholders' equity Common stock $ 500,000 ON> Total stockholders' equity Other assets 400,000 Choculator Enterprises sells chocolate bars shaped like calculators (reat protezy to math-minded consumers. Requirement 1: In the space below each item a-e, show the journal entry, if any, recorded by Choculator on the underlined date. SHOW ALL COMPUTATIONS. a. On January 1, 2018, Choculator sold merchandise to CPASRUs and received a 3-year noninterest-bearing $300,000 note. An appropriate discount rate was 12%. The effective interest method was used. Assume COGS has been recorded. b. On December 27, 2018. Choculator received payment for merchandise sold on account for $600,000, terms 2/10, net 30. The customer paid within the discount period. Choculator used the gross method for recording sales discounts. c. On December 31, 2018. Choculator recorded an adjusting entry for uncollectible accounts. The December 31, 2018, balance in accounts receivable was $1,200,000 (already adjusted for amount from item b). The balance in the allowance account prior to the adjusting entry was $36,000 (credit). Choculator estimated uncollectible accounts to be 8% of year-end accounts receivable. d.On December 31, 2018. Choculator applied the LCNRV rule and, if necessary, recorded an inventory write- down. Choculator has experienced inventory write-downs in the past. LCNRV is applied to total inventory. Ending inventory Ending inventory at at FIFO Cost_ Net realizable value Item #101 $100,000 $ 95,000 Item #102 80,000 90,000 Item #103 250.000 220,000 Part 1A, continued e. On December 31, 2018 Choculator recorded any other necessary adjusting entryies) for items a-d above. SHOW ALL COMPUTATIONS. Requirement 2: Choculator's preliminary 2018 net income was $300,000 without considering the entries in a-e. Determine the correct 2018 net income by adjusting this amount for amounts in items a-e, if any. Preliminary 2018 net income (ignore taxes) $300,000 a. b. c. d. e. Correct 2018 net income Requirement 3: Choculator's December 31, 2017, retained earnings balance was $800,000. Determine the December 31, 2018 retained earnings balance. Requirement 4: Complete the December 31, 2018 unclassified balance sheet for Choculator by including the (1) 12-31-18 ending balances in asset/contra-asset accounts found in items a-e (OTHER THAN CASH) (2) 12-31-18 retained earnings balance. Assume Cash and other amounts shown below are correct. ASSETS LIABILITIES AND STOCKHOLDERS' EQUITY Cash $150,000 Other liabilities $ 556,000 Stockholders' equity Common stock $ 500,000 ON> Total stockholders' equity Other assets 400,000