Fan-Tastic Sports Gear Inc. DATE 1 Jan. 17 Sales 17 21 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Bad Debt Expense DESCRIPTION Bad Debt Expense Accounts Receivable-CJ's Sports Corp. Cash Bad Debt Expense Accounts Receivable-Four Seasons Sportswear Co. Accounts Receivable-Healthy Running Inc. Bad Debt Expense Sales Accounts Receivable-Four Seasons Sportswear Co. Bad Debt Expense Bad Debt Expense Accounts Receivable-Barb's Best Gear Bad Debt Expense Accounts Receivable-Healthy Running Inc. Accounts Receivable-The Locker Room Accounts Receivable-CI's Sports Corp. Accounts Receivable-Get Your Gear Inc. Accounts Receivable-Ready-2-Go Feb. 15 Mar. 4 4 13 Cash 31 JOURNAL Cash POST. REF DEBIT 9,800.00 9,800.00 10,800.00 2,100.00 3,000.00 500.00 2,100.00 2,100.00 5,540.00 21,170.00 CREDIT 9,800.00 9,800.00 12,900.00 3,500.00 2,100.00 2,100.00 5,540.00 5,350.00 4,100.00 2,780.00 7,050.00 1,890.00 ASSETS ACCOUNTING EQUATION LIABILITIES EQUITY CHART OF ACCOUNTS Fan-Tastic Sports Gear Inc. General Ledger ASSETS 110 Cash 111 Petty Cash 121 Accounts Receivable-Healthy Running Inc. 122 Accounts Receivable-The Locker Room 123 Accounts Receivable-CJ's Sports Corp. 124 Accounts Receivable-Get Your Gear Inc. 125 Accounts Receivable-Four Seasons Sportswear Co. 126 Accounts Receivable-Ready-2-Go 127 Accounts Receivable-Barb's Best Gear 132 Notes Receivable-Fast Feet Co. 136 Interest Receivable 141 Inventory 145 Office Supplies 151 Prepaid Insurance 181 Land 191 Store Equipment 192 Accumulated Depreciation-Store Equipment 193 Office Equipment 194 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 211 Salaries Payable 212 Unearned Rent 213 Customer Refunds Payable 215 Notes Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends 313 Income Summary REVENUE 410 Sales 610 Rent Revenue 612 Interest Revenue EXPENSES 510 Cost of Goods Sold 520 Sales Salaries Expense 521 Advertising Expense 522 Depreciation Expense-Store Equipment 523 Delivery Expense 529 Miscellaneous Selling Expense Office Salaries Expense 531 Rent Expense 532 Depreciation Expense-Office Equipment 533 Insurance Expense 534 Office Supplies Expense 536 Credit Card Expense 537 Cash Short and Over 538 Bad Debt Expense 539 Misc. Administrative Expense 710 Interest Expense 2. Finalize the journal entries shown on the Fan-Tastic Sports Gear Inc. panel and make any necessary changes. Refer to the Chart of Accounts for the exact wording of account titles. You may also use any items from the preceding list shown in (1), if needed. Question not attempted. PAGE 11 JOURNAL Score: 0/236 ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT LIABILITIES 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 ASSETS EQUITY 3. Journalize the entry needed to record information about the note receivable from Fast Feet for the year 20Y7. Assume that the entry on November 19, 20Y7 is correct. Refer to the Chart of Accounts of exact wording of account titles. Round all amounts to the nearest dollar. Question not attempted. PAGE 11 JOURNAL Score: 0/25 ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT LIABILITIES 1 2 ASSETS EQUITY 4. Journalize the entry needed to record collection of the note at maturity on March 19, 20Y8. Assume that the entry on November 19, 20Y7 is correct. Refer to the Chart of Accounts of exact wording of account titles. Round all amounts to the nearest dollar. Question not attempted. PAGE 3 JOURNAL Score: 0/49 ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT LIABILITIES 1 2 3 4 ASSETS EQUITY Fan-Tastic Sports Gear Inc. recorded $3,000,000 of sales last year and projects sales to increase by $350,000 in the current year. Last year, 80% of sales were on account, with over 300 customer accounts. Bad debt expense was $26,187. 1. Assume that Fan-Tastic Sports Gear Inc. used the allowance method last year, and the allowance account at the end of the year had a debit balance of $2,190. The company estimated uncollectible accounts expense using the percent of credit sales method and expected 0.75% of credit sales to be uncollectible. What is the amount of the adjusting entry to provide for doubtful accounts on December 31? Round all computations to the nearest dollar. $ 2. How much higher (lower) would Fan-Tastic Sports Gear Inc.'s net income have been under the allowance method assumption previously shown in (1) than under the direct write-off method? (Enter "0" if there is no change.) Higher by $ 3. Using the allowance method, the net realizable value of the receivables would appear on which financial statement? Balance sheet Fan-Tastic Sports Gear Inc. DATE 1 Jan. 17 Sales 17 21 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Bad Debt Expense DESCRIPTION Bad Debt Expense Accounts Receivable-CJ's Sports Corp. Cash Bad Debt Expense Accounts Receivable-Four Seasons Sportswear Co. Accounts Receivable-Healthy Running Inc. Bad Debt Expense Sales Accounts Receivable-Four Seasons Sportswear Co. Bad Debt Expense Bad Debt Expense Accounts Receivable-Barb's Best Gear Bad Debt Expense Accounts Receivable-Healthy Running Inc. Accounts Receivable-The Locker Room Accounts Receivable-CI's Sports Corp. Accounts Receivable-Get Your Gear Inc. Accounts Receivable-Ready-2-Go Feb. 15 Mar. 4 4 13 Cash 31 JOURNAL Cash POST. REF DEBIT 9,800.00 9,800.00 10,800.00 2,100.00 3,000.00 500.00 2,100.00 2,100.00 5,540.00 21,170.00 CREDIT 9,800.00 9,800.00 12,900.00 3,500.00 2,100.00 2,100.00 5,540.00 5,350.00 4,100.00 2,780.00 7,050.00 1,890.00 ASSETS ACCOUNTING EQUATION LIABILITIES EQUITY CHART OF ACCOUNTS Fan-Tastic Sports Gear Inc. General Ledger ASSETS 110 Cash 111 Petty Cash 121 Accounts Receivable-Healthy Running Inc. 122 Accounts Receivable-The Locker Room 123 Accounts Receivable-CJ's Sports Corp. 124 Accounts Receivable-Get Your Gear Inc. 125 Accounts Receivable-Four Seasons Sportswear Co. 126 Accounts Receivable-Ready-2-Go 127 Accounts Receivable-Barb's Best Gear 132 Notes Receivable-Fast Feet Co. 136 Interest Receivable 141 Inventory 145 Office Supplies 151 Prepaid Insurance 181 Land 191 Store Equipment 192 Accumulated Depreciation-Store Equipment 193 Office Equipment 194 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 211 Salaries Payable 212 Unearned Rent 213 Customer Refunds Payable 215 Notes Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends 313 Income Summary REVENUE 410 Sales 610 Rent Revenue 612 Interest Revenue EXPENSES 510 Cost of Goods Sold 520 Sales Salaries Expense 521 Advertising Expense 522 Depreciation Expense-Store Equipment 523 Delivery Expense 529 Miscellaneous Selling Expense Office Salaries Expense 531 Rent Expense 532 Depreciation Expense-Office Equipment 533 Insurance Expense 534 Office Supplies Expense 536 Credit Card Expense 537 Cash Short and Over 538 Bad Debt Expense 539 Misc. Administrative Expense 710 Interest Expense 2. Finalize the journal entries shown on the Fan-Tastic Sports Gear Inc. panel and make any necessary changes. Refer to the Chart of Accounts for the exact wording of account titles. You may also use any items from the preceding list shown in (1), if needed. Question not attempted. PAGE 11 JOURNAL Score: 0/236 ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT LIABILITIES 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 ASSETS EQUITY 3. Journalize the entry needed to record information about the note receivable from Fast Feet for the year 20Y7. Assume that the entry on November 19, 20Y7 is correct. Refer to the Chart of Accounts of exact wording of account titles. Round all amounts to the nearest dollar. Question not attempted. PAGE 11 JOURNAL Score: 0/25 ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT LIABILITIES 1 2 ASSETS EQUITY 4. Journalize the entry needed to record collection of the note at maturity on March 19, 20Y8. Assume that the entry on November 19, 20Y7 is correct. Refer to the Chart of Accounts of exact wording of account titles. Round all amounts to the nearest dollar. Question not attempted. PAGE 3 JOURNAL Score: 0/49 ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT LIABILITIES 1 2 3 4 ASSETS EQUITY Fan-Tastic Sports Gear Inc. recorded $3,000,000 of sales last year and projects sales to increase by $350,000 in the current year. Last year, 80% of sales were on account, with over 300 customer accounts. Bad debt expense was $26,187. 1. Assume that Fan-Tastic Sports Gear Inc. used the allowance method last year, and the allowance account at the end of the year had a debit balance of $2,190. The company estimated uncollectible accounts expense using the percent of credit sales method and expected 0.75% of credit sales to be uncollectible. What is the amount of the adjusting entry to provide for doubtful accounts on December 31? Round all computations to the nearest dollar. $ 2. How much higher (lower) would Fan-Tastic Sports Gear Inc.'s net income have been under the allowance method assumption previously shown in (1) than under the direct write-off method? (Enter "0" if there is no change.) Higher by $ 3. Using the allowance method, the net realizable value of the receivables would appear on which financial statement? Balance sheet