ezto. Ch8HW Your * OTP's note payable matures in three years, and accrues interest at a 10% annual rate. 1. Included in OTP's January 1 Accounts Receivable balance is a $1,500 balance due from Jeff Letrotski. Jeff is having cash flow problems and cannot pay the $1,500 balance at this time. On 01/01, OTP arranges with Jeff to convert the $1,500 balance to a 6-month note, at 12% annual interest. Jeff signs the promissory note, which indicates the principal and all interest will be due and payable to OTP on July 1 of this year 2. OTP paid a $500 insurance premium on 01/02, covering the month of January, the payment is 3. OTP purchased an additional 150 units of inventory from a supplier on account on 01/05 at a total cost 4. OTP paid a courier $300 cash on 01/05 for same-day delivery of the 150 units of inventory recorded directly as an expense of $9,000, with terms 2/15, n/30 5. The 30 units that OTP's customer paid for in advance in December are delivered to the customer on 6. On 01/07, OTP paid the amount necessary to settle the balance owed to the supplier for the 1/05 7. Sales of 40 units of inventory occuring during the period of 01/07-01/10 are recorded on 01/10. The 8. Collected payments oh 01/14 from sales to customers recorded on 01/10. The discount was properly 9. OTP paid the first 2 weeks wages to the employees on 01/16. The total paid is $2,200 01/06 purchase of inventory (in 3). sales terms are 2/10, p/30 taken by customers on $5,800 of these credit sales; consequenty, OTP received less than $5,800. 0. Wrote off a $1,000 customer's account balance on 01/18. OTP uses the allowance method, not the 11. Paid $2,600 on 01/19 for December and January rent. See the earlier bullets regarding the December 12. OTP recovered $400 cash on 01/26 from the customer whose account had previously been written off 13. An unrecorded $400 utility bill for January arrived on 01/27. It is due on 02/15 and will be paid then. direct write-off method portion. The January portion will expire soon, so it is charged directly to expense on 01/18 14. Sales of 65 units of inventory during the period of 01/10-01/28, with terms 2/10, n/30, are recorded on 15. Of the sales recorded on 1/28, 15 units are returned to OTP on 01/30. The inventory is not damaged 16. On 01/31, OTP records the $2,200 employee salary that is owed but will be paid February 1 01/28 and can be resold 17. OTP uses the aging rnethod to estimate and adjust for uncollectible accounts on 01/3. All of OTP's accounts receivable fall into a single aging category, for which 8% is estimated to be uncollectible. (Update the balances of both relevant accounts prior to determining the appropriate adjustment, and round your calculation to the nearest dollar.) 18. Accrue interest for January on the note payable on 01/31 19. Accrue interest for January on Jeff Letrotski's note on 01/31 (see 1) Income Statement of General Trial Balance Statement Earnings General Requirement Journal Retained Balance Sheet Anal Prepare all January journal entries and adjusting entries for items 1-19. Review the 'General Ledger and th Balance' Tabs to see the effect of the transactions on the account balances. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. ezto. Ch8HW Your * OTP's note payable matures in three years, and accrues interest at a 10% annual rate. 1. Included in OTP's January 1 Accounts Receivable balance is a $1,500 balance due from Jeff Letrotski. Jeff is having cash flow problems and cannot pay the $1,500 balance at this time. On 01/01, OTP arranges with Jeff to convert the $1,500 balance to a 6-month note, at 12% annual interest. Jeff signs the promissory note, which indicates the principal and all interest will be due and payable to OTP on July 1 of this year 2. OTP paid a $500 insurance premium on 01/02, covering the month of January, the payment is 3. OTP purchased an additional 150 units of inventory from a supplier on account on 01/05 at a total cost 4. OTP paid a courier $300 cash on 01/05 for same-day delivery of the 150 units of inventory recorded directly as an expense of $9,000, with terms 2/15, n/30 5. The 30 units that OTP's customer paid for in advance in December are delivered to the customer on 6. On 01/07, OTP paid the amount necessary to settle the balance owed to the supplier for the 1/05 7. Sales of 40 units of inventory occuring during the period of 01/07-01/10 are recorded on 01/10. The 8. Collected payments oh 01/14 from sales to customers recorded on 01/10. The discount was properly 9. OTP paid the first 2 weeks wages to the employees on 01/16. The total paid is $2,200 01/06 purchase of inventory (in 3). sales terms are 2/10, p/30 taken by customers on $5,800 of these credit sales; consequenty, OTP received less than $5,800. 0. Wrote off a $1,000 customer's account balance on 01/18. OTP uses the allowance method, not the 11. Paid $2,600 on 01/19 for December and January rent. See the earlier bullets regarding the December 12. OTP recovered $400 cash on 01/26 from the customer whose account had previously been written off 13. An unrecorded $400 utility bill for January arrived on 01/27. It is due on 02/15 and will be paid then. direct write-off method portion. The January portion will expire soon, so it is charged directly to expense on 01/18 14. Sales of 65 units of inventory during the period of 01/10-01/28, with terms 2/10, n/30, are recorded on 15. Of the sales recorded on 1/28, 15 units are returned to OTP on 01/30. The inventory is not damaged 16. On 01/31, OTP records the $2,200 employee salary that is owed but will be paid February 1 01/28 and can be resold 17. OTP uses the aging rnethod to estimate and adjust for uncollectible accounts on 01/3. All of OTP's accounts receivable fall into a single aging category, for which 8% is estimated to be uncollectible. (Update the balances of both relevant accounts prior to determining the appropriate adjustment, and round your calculation to the nearest dollar.) 18. Accrue interest for January on the note payable on 01/31 19. Accrue interest for January on Jeff Letrotski's note on 01/31 (see 1) Income Statement of General Trial Balance Statement Earnings General Requirement Journal Retained Balance Sheet Anal Prepare all January journal entries and adjusting entries for items 1-19. Review the 'General Ledger and th Balance' Tabs to see the effect of the transactions on the account balances. If no entry is required for a transaction/event, select "No journal entry required" in the first account field