1. Estimate bad debt expense for Camel Bookstore using the information for the total accounts receivable in the table below. Prepare the journal entry to record theexpense on December 31, 20Y5.

Days Past Due
Customer #	Balance	Not Past Due	130	3160	6190	91180	181 365	Over 365
Total	11,250,690	8,420,000	1,440,600	820,000	325,000	149,700	54,790	40,600
Percent uncollectible		1%	4%	7.5%	15%	30%	60%	82%

2. Prepare the journal entries to record the following transactions if Keller Products uses the allowance method to account for uncollectible receivables.
   1. Received $900 in cash from Eli McDonald and wrote off the remainingamount owed of $1,450 from Eli McDonald on February 15, 20Y5.
   2. Reinstated the entire amount of Eli McDonalds accounts receivable owed and received the cash for payment in full on June 2, 20Y5.
3. Using the allowance method, record the following transactions for Olive Oils Inc.:
   1. Received $1,000 in cash for Brad Mays outstanding account receivable and wrote off the remainder of $750 on July 6, 20Y5.
   2. Reinstated Brad Mays account for the amount previously written off on December 21, 20Y5. Brad May paid for the amount owed in full.
4. Olive Oils Inc. has the following account balances at the 20Y5 calendar year-end: Accounts Receivable of $10,250 and Allowance for Doubtful Accounts of $1,500. What is the net realizable value that the company will report on its balance sheet?
5. KAA Co. uses the allowance method to record uncollectible accounts. The company has a 20Y5 year-end Accounts Receivable balance of $72,350. Its pre-adjusted Allowance for Doubtful Accounts has a balance of $10,200. The company records a $3,500 Bad Debt Expense for the year. What is KAA Co.s net realizable value for its 20Y5 balance sheet?
6. If Tasty Treats prepares the following journal entry to record Bad Debt Expense, does the company use the allowance or direct write-off method to account for uncollectible accounts?

Aug. 15	Bad Debt Expense	2,150
	Allowance for Doubtful Accounts		2,150

__________________

7. Expressway estimates uncollectible accounts using an aging schedule for accounts receivable. Does the company use the allowance or direct-write off method to account for uncollectible accounts? _______________________

8. On March 1, 20Y5, KAA Co. issues a $4,000 promissory note to Red Houses Inc. in settlement of its account receivable, which is three months past due. The note will be due in 60 days and has a 10% interest rate.
   1. Record the journal entry for the receipt of the note.
   2. Prepare the journal entry for KAA Co. on the due date, assuming that Red Houses Inc. pays the promissory note. Round interest to the nearest wholedollar.
9. KAA Co. issues a $2,500 promissory note to Mane Attractions on August 1, 20Y5, insettlement of its past due account receivable. The note states a due date in 30 days with a 12% interest rate.
   1. Record the journal entry for the issuance of the note.
   2. Prepare the journal entry for KAA Co. on the due date, assuming that Mane Attractions pays the promissory note.
10. classified as current or noncurrent on the balance sheet as of December 31, 20Y5.
    1. Accounts Receivable, $2,750 ___________
    2. Notes Receivable (due in 27 months), $5,100 ___________
    3. Taxes Receivable (due in March), $1,250 ___________
11. Using the information in the table below, calculate The Garden Shops accounts receivable turnover for 20Y5 and 20Y6, rounding answers to one decimal place. Does the change indicate a favorable or unfavorable trend?

	20Y6	20Y5
Sales	$86,750	$42,500
Accounts receivable:
Beginning of year	20,400	22,300
End of year	26,320	20,400

12. Tasty Treats has implemented a change in its credit policy in hopes of becoming more efficient in collecting accounts receivable. Using the information provided, calculate the companys days sales in receivables. Round answers to one decimal place. Has the change met the companys goal of increasing efficiency?

	20Y6	20Y5
Sales	$865,100	$870,600
Accounts receivable:
Beginning of year	99,530	98,200
End of year	94,200	99,530