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Name HW 3 DUE: October 8, 2020 Section . 1. Comet Graphics company prepares annual financial statements and therefore adjusts its accounts on December 31, 2010. The following information is available for year 2010: i. Comet Graphics company purchased supplies of $2,700 in January. At December 31, there was $1,500 of supplies on hand. ii. The $17,000 note payable was issued on September 1, 2010. It is a 12%, 6-month note, so the interest for each month is 17,000*12%*(1/12). $170. The Comet Graphics company does not pay interest until the due date (Mar 1", 2011). Comet Graphics company paid for a one-year insurance policy of $1,800. Coverage began on March 1, 2010. iv. At December 31, Comet Graphics company determines that it has performed service of $1,000 for Water Corporation, although the company has not billed Water Corporation yet. Required: A. Journalize the appropriate adjusting entries on Dec 31, 2010. (1 pt. each) iii. 2. At the beginning of the current period, Emler Corp. had balances in Accounts Receivable of $200,000 and in Allowance for Doubtful Accounts of $9,000 (credit). During the period, it had net credit sales of $650,000 and collections of $590,000. Uncollectible accounts are estimated to total $20,000 at the end of the period. a. Prepare the entries to record sales during the period. (1 point) b. Prepare the entries to record collections during the period. (1 point) c. Prepare the entry to record bad debts expense for the period. (1 point) 3. At the end of 2008, Comet Company has accounts receivable of $500,000 and an Allowance for Doubtful Accounts of $25,000 (credit). On January 24, 2009, it is learned that the company's receivable from Crusader Inc. is not collectible and therefore management authorizes a write-off of their account for $10,000 Prepare the journal entry to record the write-off of the uncollectible account. (I point) b. What is the Net Realizable Value of the Accounts Receivables (1 point each: 6). before the write-off (ii) after the write-off