F B C D G H 3 On June 1, 2020, Nixon borrowed $18,000 cash from Carter giving Carter a $18,000, 6%, 10-month note. 4 On April 1, 2021, Nixon repaid Carter the maturity value of the note. 5 REQUIRED: 6 Give the general journal entries necessary for 2020 and 2021 for Carter Company (the lender) 7 assuming that Carter Company prepares financial statements semi-annually on June 30 and December 31. 8 GENERAL JOURNAL Date Account Titles DR CR 10 9 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 8 3 On March 7, 2020 Homer Company determined that I.M. Broke's $3,700 account receivable was 4 uncollectible. On December 4, 2020, the $3,700 cash was unexpectedly received on account from 5 I. M. Broke. 6 REQUIRED: 7 A. Give the general journal entries required to record the March 7 and December 4 transactions for Homer 8 Company, assuming the direct method of accounting for bad debts is used. 9 B Give the general journal entries required to record the March 7 and December 4 transactions for Homer 10 Company, assuming the allowance method of accounting for bad debts is used. 11 C. Under the allowance method, if the cash realizable value of Homer Company's accounts 12 receivable was $69,000 prior to the March 7 write-off entry, what is the cash realizable value of the 13 accounts receivable after the March 7 write-off entry? 14 15 GENERAL JOURNAL 16 Date Account Titles DR CR 17 Part A-Direct Write-Off Method 18 19 20 21 22 23 24 25 26 27 28 Part B - Allowance Method 29 30 31 32 33 34 35 36 37 38 Part 2-Checkpoi + B E F Module 8 Checkpoint #3 Name Oscar Company uses the allowance method to account for bad debts. On December 31, 2020, the following information was available: Net Sales $4,820,000 Accounts Recevable $1,140,000 REQUIRED: A. Give the December 31, 2020 adjusting entry required under the allowance method, assuming Case 1: Bad debts are estimated at 1% of net sales; the unadjusted balance of the Allowance for Bad Debts account is $8,700 credit. Case 2: Bad debts are estimated at 1% of net sales; the unadjusted balance of the Allowance for Bad Debts account is $7,500 debit. Case 3: Bad debts are estimated at 4% of accounts receivable; the unadjusted balance of the Allowance for Bad Debts account is $8,700 credit. Case 4: Bad debts are estimated at 4% of accounts receivable; the unadjusted balance of the Allowance for Bad Debts account is $7,500 debit. GENERAL JOURNAL Date Account Titles DR CR Case 1 3 Case 2 2 3 4 5 B 7 8 9 Case 3 0 Case 4 1 2 E4 B. Based on your journal entries from Part A, indicate the balances that would be reported on the financial statements on December 31, 2020: 6 On the Income On the Balance 37 Statement: Sheet: 8 Bad Debts Allowance for Cash Realizable Value 39 Case Expense Bad Debts of Accounts Receivable 20 31 1 #2 2 44 45 3 46 47 4 48 19