Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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 5% 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 recelve 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, helwets, harnesses, conpasses, and other siscellaneous equipant for $4,500 cash. Feb. 25 Mr. Kendall's boy Scout troop participates in a one-day TEMM adventure. Normally, Tony would charge a group of this size 53,000 , but he wants to encourage kids to exercise more and enjoy the outdoors so he charges the group onty $2,500. Great Adventures provides these services on account. Feb. 28 The Boy Scout troop pays the full amount owed, less the 5% quick-payment discount. Mar. 19 Reynold's Managenent has its employees participate in a one-day TENM adventure. Great Adventures provides services on account for $3,500, and Reynotd's agrees to pay within 30 days. Mar. 27, Reynold's pays the full amount owed, less the 5% quick-paynent discount. Apr. 7 Several een fron the Elks Lodge decide to participate in a TEAM adventure. They pay $7, 000 , and the event is scheduted for the following week. Apr. 14 The TEAM adventure is held for nembers of the Elks Lodge. Apr. 39 Myers. Manufacturing participates in a TEAM adventure. Great Adventures provides services on account for 55,500 , and Myers agrees to pay within 30 days. May 31 Nyers Manufacturing fails to pay the amount owed within the specified period and agrees to sign a three-month, 8v note receivable to replace the existing account receivable. Jun. 15 Several MBA groups participate in TEAM adventures. Great Adventures provides services on-account for $21,508 to these groups, with payment due in July. 2. Consider the following information as of June 30,2022. a. Suzle estimates uncollectible accounts to be 10% of accounts receivable (which does not include the $5,500 note receivable from Myers Manufacturing). Prepare the adjusting entry for uncollectible accounts. (If no entry is required for a particular transaction/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 receivable from Myers Manufacturing. (If no entry is required for a par 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 deducteds minus sign.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

Is it clear what happens if an employee violates the policy?

Answered: 1 week ago