fx N E29 "A C D E F GE Requirements 1-3 Shooby Dooby Show (SDS) reported credit sales of $95,000 during January 2018. Later in the year SDS determined that it would not be able to collect a $500 account balance that was owed by customer John Smith. SDS used the percentage of credit sales method for estimating monthly bad debts but then switched to the adding of accounts receivable methods at its December 31 year-end. Requirement 1 - Record the journal entries for the following scenarios: a.- SDS estimates 1% of credit sales will result in bad debts for January 2018. b. - Record the journal entry to write-off the account receivable not collected from John Smith. 6.- SDS estimates $11,000 of its year-end Accounts Receivable is uncollectable as shown below. Calculate and record the joumal entry if Allowance for Doubtful Accounts has an unadjusted credit balance of $3,000. Number of Days Unpaid Total 0-30 31-60 61-90 >90 Total Accounts Receivable $171,000 $50,000 $80,000 $40,000 $1,000 Estimated Uncollectable (%) x 1% X 15% x 50% Estimated Uncollectable ($) $11,000 $6,000 7 8 9 0 2 3 x 5% $400 $500 $500 Requirement 1: Joumal Entries Account Debit Credit 25 26 27 28 29 30 31 32 33 34 (a) dr cr Choose account from the drop down Acclist Debit Credit (b) dr cr 35 36 37 38 39 Account Debit Credit (c) de Req 1-3 Ch8 Req 4&5 Ch83 Instructions Ready Req 6 Ch8 Normal View Sum Requirement 2: Calculate the 2018 Receivables Tumover Ratio What is the 2018 Receivables Tumover Ratio 1 SDS reported Net Sales of $950,000 in 2018 and Not Accounts Receivable of $160,000 at December 31, 2018, and $167,588 at December 31, 2017? (Answer to 1 decimal place.) Requirement 3: Calculate the 2017 Days to Collect a. What is the 2017 Days to Collect if the receivable turnover ratio was 6.4? Days (Answer to 1 decimal place.) b. Were collections faster or slower in 2017 or 2018. (Answer with one word, faster or slower) b. NM 6 7 8 9 10 11 12 13 Requirements 4&5 On March 1, 2018 Colorado Credit Company (CCC) loaned $600,000 to another company. The promissory note state an annual interest rate of 8%, with interest payments due semi-annually on July 31 and January 31. Ccc prepares financial statements every quarter ending on May 3, August 31, November 30, and February 28 Requirement 4: Calculate the interest eamed onch month What is the 2018 Receivables Tumover Ratio # SDS reported Net Sales of $950,000 in 2018 and Net Accounts Recolvable of $160,000 at December 31, 2018, and $187,58 at December 31, 2017? (Answer to the nearest whole dolar.) 15 ON 09 19 20 Requirements: Calculating Interest Received a. Using the interest formula, what is the amount of interest received on July 31, 2018? (Answer to the nearest whole dollar.) a. Using the interest formula, what is the amount of interest received on January 31, 2019? (Answer to the nearest whole dollar) 22 23 24 25 10 Requirement & Record the journal entries for the following events Dobilt Credik March 1, 2018 - Nate inued Account dr Cr Choose account from the drop down b. May 31, 2018 - Interest accrue list Acchem Debit Credi Cr July 21, 2018 - Interont payment recalved Account dir Dobit Credit Cr 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 h41 42 43 44 45 46 d. August 31, 2018 - Interest accrued Account dr Dobilt Credit Cr . November 30, 2018 - Interest accrued Account dr Dobe Credit cr Dobit Credit January 31, 2019 - Interest payment received Account dr CF 47 9 48 49 SO 51 52 53 54 55 Debt Credit February 28, 2010. Interest accrued Account dr Cr Req 1-3 ChB Reg 4&5 ChB Req 6 Chad instructions Ready Sum Normal View
