D Question 2 1 pts USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT (6) QUESTIONS: Sparky Company occasionally ases its accounts receivable to obtain immediate cash. At the end of their second quarter, June 30, 2018, the company reported the following for their accounts receivable: Accounts Receivable (net of $31 200 allowance) $748 800 During the period from July 1 . Sept. 30, Sparky had sales of SI 20000, of which 85% were on account. Sparky collected $810,000 on unassigned accounts and wrote off $12.000 of ynassigned accounts receivable. Sparky also customer whose account had previously been written off (not included in the $810,000 above). (HINT: Use your CH 7 motes page 6, to help you reconcile the A/R and ADA t-accounts asing this information ) $1 450 from a On August 1, Sparky assigned $350 000 of the accounts receivable to B-Z. Finance and received 80% of the value of the accounts assigned less a finance fee of S500. E-Z charges 1%per month ( 12% APR) on the outstanding loan balance. Cash collections from assigned accounts are to be remitted monthly to E-Z and cover principal and accrued interest for the month. During August, Sparky collected $210,000 in cash of the accounts receivable assigned and, in addition, accepted sales returns of $3,000 on assigned accounts . During September, Sparky collected S61,000 in cash and. in addition, wrote off $2.000 of assigned accounts as uncollectible On September 30, sparky estimated 4% of the total accounts receivable (e.g. Accounts Receivable-General-d Accounts Receivable-Assigned) to he uncollectible. Required: Use the above information to determine each of the following: Determine how much Interest Expense Sparky would report on their quarterly income statement for the period July 1 thru Sept 30 from the accounts receivable assigned. b. Sparky records Bad Debt Expense quarterty as an AJE. Determine Bad Debt Expense for the third quarter, July 1-Sept 30 c. Prepare the receivables section of the Balance Sheet dated September 30, 2018 using the following format Accounts Receivable General s ??? Accounts Receivable- Assigned s77 Less: Note Payable, 12% Equity in Accounts Receivable Assigned Less: Alowance for Doubtful Accounts $7?? s 61.472 $ 2?? ple Drive in Linkedin i Handshake N Netfix Hulu Alpha Del IN Hulu 6 Alpha Delta Pi GINsystem Other B C. Prepare the receivables section of the Balance Sheet dated September 30, 2018 using the following format. Accounts Receivable General S ??? Accounts Receivable-Assigned $ ?21? Less: Note Payable, 12% $2?? Equity in Accounts Receivable Assigned Less: Allowance for Doubtful Accounts NET REALIZABLE VALUE $ 61,472 $ 661,392 1 pts D Question 7 Using the information from #2 above, answer the following: Determine the ending balance of Allowance for Doubtful Accounts (after adjustment) as of September 30: $ D Question 2 1 pts USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT (6) QUESTIONS: Sparky Company occasionally ases its accounts receivable to obtain immediate cash. At the end of their second quarter, June 30, 2018, the company reported the following for their accounts receivable: Accounts Receivable (net of $31 200 allowance) $748 800 During the period from July 1 . Sept. 30, Sparky had sales of SI 20000, of which 85% were on account. Sparky collected $810,000 on unassigned accounts and wrote off $12.000 of ynassigned accounts receivable. Sparky also customer whose account had previously been written off (not included in the $810,000 above). (HINT: Use your CH 7 motes page 6, to help you reconcile the A/R and ADA t-accounts asing this information ) $1 450 from a On August 1, Sparky assigned $350 000 of the accounts receivable to B-Z. Finance and received 80% of the value of the accounts assigned less a finance fee of S500. E-Z charges 1%per month ( 12% APR) on the outstanding loan balance. Cash collections from assigned accounts are to be remitted monthly to E-Z and cover principal and accrued interest for the month. During August, Sparky collected $210,000 in cash of the accounts receivable assigned and, in addition, accepted sales returns of $3,000 on assigned accounts . During September, Sparky collected S61,000 in cash and. in addition, wrote off $2.000 of assigned accounts as uncollectible On September 30, sparky estimated 4% of the total accounts receivable (e.g. Accounts Receivable-General-d Accounts Receivable-Assigned) to he uncollectible. Required: Use the above information to determine each of the following: Determine how much Interest Expense Sparky would report on their quarterly income statement for the period July 1 thru Sept 30 from the accounts receivable assigned. b. Sparky records Bad Debt Expense quarterty as an AJE. Determine Bad Debt Expense for the third quarter, July 1-Sept 30 c. Prepare the receivables section of the Balance Sheet dated September 30, 2018 using the following format Accounts Receivable General s ??? Accounts Receivable- Assigned s77 Less: Note Payable, 12% Equity in Accounts Receivable Assigned Less: Alowance for Doubtful Accounts $7?? s 61.472 $ 2?? ple Drive in Linkedin i Handshake N Netfix Hulu Alpha Del IN Hulu 6 Alpha Delta Pi GINsystem Other B C. Prepare the receivables section of the Balance Sheet dated September 30, 2018 using the following format. Accounts Receivable General S ??? Accounts Receivable-Assigned $ ?21? Less: Note Payable, 12% $2?? Equity in Accounts Receivable Assigned Less: Allowance for Doubtful Accounts NET REALIZABLE VALUE $ 61,472 $ 661,392 1 pts D Question 7 Using the information from #2 above, answer the following: Determine the ending balance of Allowance for Doubtful Accounts (after adjustment) as of September 30: $