HW 1: Central Texas Plumbing Supply had the following account balances as of Nov. 30, 2018: Accounts Receivable $85,000 and Allowance for Bad Debts had a credit balance of $4,200. On December 7, the company wrote off the following as uncollectible: JoJo Plumbers, $800 and HiWater Plumbing, $400. Requirement 1: Journalize the write off. General Journal Account Name Accounts Receivable JoJo Plumbers Accounts Receivable - HiWater Plumbers (wrote off uncollectible accounts) Debit Credit During the month of December several additional sales on account took place and a number of payments on account came in to the company but no other accounts were written off as uncollectible. On December 31, an Aging of Accounts schedule was prepared in as part of process for recording year-end bad debts expense based on aging of accounts receiving method of estimation. A summary (no names listed) of the schedule used to identify the target balance follows: Requirement 2: calculate the target and journalize the adjusting entry Aging of Account Receivable as of December 31 Accounts Receivable 1-30 Days $120,000 Total Estimated % Uncollectible Estimated Uncollectible $ 70,000 .3% 210 31-60 Days 61-90 Days 15,000 20% 3,000 Target Over 90 Days 5,000 25% Total = ? The T account for Allowance for Bad Debt is used to analyze the activity and required entry in the account Allowance for Bad Debts Dec 7 1,200 4,200 Nov 30 3,000 unadjusted Dec. 31 bal. 6. adjusting entry below ? Target balance, Dec 31 Adjusting Entry General Journal Account Name Debit Credit Bad Debt Expense Allowance for Bad Debts Requirement 3:Show how Central Texas Plumbing Supply would report accounts receivable at Dec. 31: Balance Sheet (Partial) Current Assets: Accounts Receivable $ 120,000 Less: Allowance for Bad Debts 7. $114,340 (net real. value) (check number) HW 2: Longhorn Financial Services loans money. Three cash loans were made in 2018. Requirement 1: For the loans listed determine maturity (due) date & maturity value (hint: prin. + interest) Note # Date Principle Amt. Interest Term Mth/Day Due? Year Maturity Value? Due? 1 Aug 1 12,000 17% 1 year 2 Nov 30 9,000 6% 6 months May 30 8. 3 Dec 19 6,000 12% 30 days 9. Jan. 6,060 Check number: $29,370 total Maturity Value for the 3 notes Requirement 2: Journalize the entry to record the inception (date the loan was made) for each note and journalize the adjusting entry to record the accrued interest (see page 25) for all three notes in one entry on year-end, Dec. 31. General Journal Account Name Debit Credit Note Receivable # 1 10. 12,000 12,000