Exercise 7-12 (Algo) Percent of sales method LO P3 Warner Company's year-end unadjusted trial balance shows accounts receivable of $109,000, allowance for doubtful accounts of $700 (credit), and sales of $380,000. Uncollectibles are estimated to be 1% of sales. Prepare the December 31 year-end adjusting entry for uncollectibles. View transaction list Journal entry worksheet Record the estimate of uncollectibles. Note: Enter debits before credits. General Journal Debit Credit Date December 31 Exercise 7-13 (Algo) Percent of accounts receivable method LO P3 Mazie Supply Company uses the percent of accounts receivable method. On December 31, it has outstanding accounts receivable of $58,500, and it estimates that 4% will be uncollectible. Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has: (a) a $995 credit balance before the adjustment. (b) a $293 debit balance before the adjustment. View transaction list Journal entry worksheet Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has a $995 credit balance before the adjustment. Note: Enter debits before credits. Transaction General Journal Debit Credit (a) Journal entry worksheet Record estimated bad debts assuming that Allowance for Doubtful Accounts has a $4,600 credit balance. Note: Enter debits before credits. General Journal Debit Credit Date December 31 Journal entry worksheet Record estimated bad debts assuming that Allowance for Doubtful Accounts has a $2,000 debit balance. Note: Enter debits before credits. Date General Journal Debit Credit December 31 Record entry Clear entry View general journal Required information Use the following information for the Exercises 18-19 below. (Algo) (The following information applies to the questions displayed below.] Following are transactions of Danica Company. December 13 Accepted a $14,000, 45-day, 6% note in granting Miranda Lee a time extension on her past-due account receivable. December 31 Prepared an adjusting entry to record the accrued interest on the Lee note. Exercise 7-19 (Algo) Notes receivable transactions LO P4 January 27 Received Lee's payment for principal and interest on the note dated December 13. March 3 Accepted a $8,000, 8%, 90-day note in granting a time extension on the past-due account receivable of Tomas Company March 17 Accepted a $12,000, 30-day, 8% note in granting H. Cheng a time extension on his past-due account receivable. April 16 H. Cheng dishonored his note. May 1 Wrote off the H. Cheng account against the Allowance for Doubtful Accounts. June 1 Received the Tomas payment for principal and interest on the note dated March 3. Complete the table to calculate the interest amounts and use those calculated values to prepare your journal entries. (Do not round intermediate calculations. Use 360 days a year.) Required information Use the following information for the Exercises 18-19 below. (Algo) (The following information applies to the questions displayed below.] Following are transactions of Danica Company. December 13 Accepted a $14,000, 45-day, 6% note in granting Miranda Lee a time extension on her past-due account receivable. December 31 Prepared an adjusting entry to record the accrued interest on the Lee note. Exercise 7-19 (Algo) Notes receivable transactions LO P4 January 27 Received Lee's payment for principal and interest on the note dated December 13. March 3 Accepted a $8,000, 8%, 90-day note in granting a time extension on the past-due account receivable of Tomas Company March 17 Accepted a $12,000, 30-day, 8% note in granting H. Cheng a time extension on his past-due account receivable. April 16 H. Cheng dishonored his note. May 1 Wrote off the H. Cheng account against the Allowance for Doubtful Accounts. June 1 Received the Tomas payment for principal and interest on the note dated March 3. Complete the table to calculate the interest amounts and use those calculated values to prepare your journal entries. (Do not round intermediate calculations. Use 360 days a year.) Total Through Maturity Amount Accrued at December 31 Interest Recognized January 27 Principal Rate (%) Time Total interest Total Through Maturity Principal Rate (%) Time Total interest Total Through Maturity Principal Rate (%) Time Total interest Journal entry worksheet 1 2 3 4 5 6 Received Lee's payment for principal and interest on the note dated December 13. Assume no reversing entries were prepared. Note: Enter debits before credits. ate Ge urnal Debit Credit January 27 Record entry Clear entry View general journal Journal entry worksheet Accepted a $8,000, 8%, 90-day note in granting a time extension on the past- due account receivable of Tomas Company. Note: Enter debits before credits. Date General Journal Debit Credit March 03 Record entry Clear entry View general journal Journal entry worksheet Received the Tomas payment for principal and interest on the note dated March 3. Note: Enter debits before credits. Date General Journal Debit Credit June 01 Record entry Clear entry View general journal