Husemann Co.'s assets include notes receivable from customers. During fiscal 2019, the amount of notes receivable averaged $45,100, and the interest rate of the notes averaged 9.3%.

a-1.

Calculate the amount of interest revenue earned by Husemann Co. during fiscal 2019.

Amount:

Husemann Co.'s assets include notes receivable from customers. During fiscal 2019, the amount of notes receivable averaged $45,100, and the interest rate of the notes averaged 9.3%.

a-2. Prepare a horizontal model that accrues the interest revenue earned from the notes. (Use amounts with + for increases and amounts with for decreases)

Balance Sheet

Income Statement

Assets

=

Liabilities

+

Stockholders' Equity

Net Income

=

Revenues

Expenses

Husemann Co.'s assets include notes receivable from customers. During fiscal 2019, the amount of notes receivable averaged $45,100, and the interest rate of the notes averaged 9.3%.

b-1. If the balance in the Interest Receivable account increased by $2,780 from the beginning to the end of the fiscal year, how much interest receivable was collected during the fiscal year?

Amount

Husemann Co.'s assets include notes receivable from customers. During fiscal 2019, the amount of notes receivable averaged $45,100, and the interest rate of the notes averaged 9.3%.

b-2. Prepare a horizontal model to show the collection of this amount. (Use amounts with + for increases and amounts with for

Balance Sheet

Income Statement

Assets

=

Liabilities

+

Stockholder's Equity

Net Income

=

Revenues

Expenses

The Allowance for Bad Debts account had a balance of $6,600 at the beginning of the year and $8,700 at the end of the year. During the year (including the year-end adjustment), bad debts expense of $12,000 was recognized.

Required:

Calculate the total amount of past-due accounts receivable that were written off as uncollectible during the year. (Hint: Make a T-account for the Allowance for Bad Debts account, plug in the amounts that you know, and solve for the missing amount.)

Bad debt write-offs