Great Adventures Problem AP5-1 PART 2

Great Adventures Problem AP5-1 [The following information applies to the questions displayed below.] Tony and Suzie are ready to expand Great Adventures even further in 2022. Tony believes that many groups in the community (for example, Boy Scouts, church groups, civic groups, and local businesses) would like to hold one-day outings for their members. Groups would engage in outdoor activities such as rock climbing, fishing, capture the flag. paintball, treasure hunts, scavenger hunts, nature hikes, and so on. The purpose of these one-day events would be for each member of the group to learn the importance of TEAM (Together Everyone Achieves More). Tony knows that most people are not familiar with these types of activities, so to encourage business he allows groups to participate in the event before paying. He offers a 4% quick-payment discount to those that pay within 10 days after the event. He also guarantees that at least eight hours of outdoor activities will be provided or the customer will receive a 20% discount. For the first six months of the year, the following activities occur for TEAM operations. Jan. 24 Great Adventures purchases outdoor gear such as ropes, helmets, harnesses, compasses, and other miecellaneoun equipment for $6,000 cash. Feb. 25Mr. Rendall's Boy Scout troop participates in a one-day TEAM adventure. Normally, Tony would oharge a group of this size $4,500, but he wants to encourage kids to exercise more and enjoy the outdoors so he charges the group only $4,000. Great Adventures provides these services on account. Pob. 28 The Boy Scout troop pays the fuli amount owed, less the 41 quick-payment discount. Mar. 19 Reynold's Managoont han its omployees partieipate in a one-day TEAM adventure. Great Adventures providen services on account for $5,000, and reynold's agrees to pay within 30 days. Mar. 27 Reynold's pays the full anount owed, less the 41 quick-payment discount. Apr. 7 Several men from the R1ks Lodge decide to partiolpate in a TEMM adventure. They pay $8,500, and the ovent is scheduled for the following week. Apr. 14 The TEAM adventure is held for menbers of the E1ks Lodge. Apr. 30 Hyers Manufacturing participates in a TEAN adventure. Great Adventures provides services on account May 31 for $7,000, and Myers agrees to pay within 30 days. hay 31 kyers Manufacturing fails to pay the amount owed within the specified perlod ald agrees to sign a three-month, 7 note receivable to replace the existing account recelvable. Jun. 15 several Max groups participate in TEMI adventures. Great Adventures provides services on account for $29,000 to these groups, with paynent due in July. Great Adventures Problem AP5-1 Part 2 2. Consider the following information as of June 30,2022 . a. Suzie estimates uncollectible accounts to be 8% of accounts receivable (which does not include the $7,000 note recelvable from Myers Manufacturing). Prepare the adjusting entry for uncollectible accounts. (If no entry is required for a particular transection/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet Record adjusting entry for uncollectible accounts. Note: Enter debits before credits. b. Accrue one month of interest on the note recelvable from Myers Manufacturing. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet Note: Enter debits before credits. c. Prepare a partial balance sheet showing the net accounts receivable section. (Amounts to be deducted should be indicated by minus sign.)