ma Credit Date Description Jan. 17 Sales Bad Debt Expense Debit 9,800 9,800 9,800 17 Bad Debt Expense Accounts Receivable-CJ's Sports Corp. 9,800 21 Cash Bad Debt Expense Accounts Receivable-Four Seasons Sportswear Co. 10,700 2,200 12,900 Feb. 15 Accounts Receivable-Healthy Running Inc. Bad Debt Expense Sales 3,000 500 3,500 2,200 Mar. 4 Accounts Receivable-Four Seasons Sportswear Co. Bad Debt Expense 2,200 2,200 4 Cash Bad Debt Expense 2,200 5,540 13 Cash Accounts Receivable-Barb's Best Gear 5,540 21,070 31 Bad Debt Expense Accounts Receivable-Healthy Running Inc. Accounts Receivable-The Locker Room Accounts Receivable-C)'s Sports Corp. Accounts Receivable-Get Your Gear Inc. Accounts Receivable-Ready-2-Go 5,250 4,100 2,780 7,050 1,890 2. Analize the Journal entries shown on the Fan-Tastic Sports Gear Inc. panel and make any necessary changes. If an amount box does not require an entry, leave it blank Jan. 17 Cash x Jan. 21 Feb. 15 Mar. 4 III II II II II III II III II II II II III Mar. 4 Mar. 13 Mar 31 Feb. 15 Mar. 4 Mar. 4 II II II II II II II II III Mam 13 Mar: 31 Note Receivable In the trial balance for March, you see that Notes Recelvable-Fast Feet Co, has a negative balance of $195, which would seem to indicate that Fast Feet paid too much. Looking back through the journal entries for March, you find that on March 19 the accounting intern recorded receipt of $5,070 in payment of this note receivable. Further investigation reveals that on November 19, 2017, this note receivable was received from Fast Feet Co. for $4,875. You can find no additional information about this note in the accounting records. Assume a 360 day year. Using the preceding Information, compute the term and the interest rate of the note receivable from Fast Feet. 1. Term of the note: 2. Interest rate of the note: Oh My Work 1. Use the equation for computing interest on a note but solve for the term 2. Use the equation for coming interest on a nota but solve for the interest rate 3. Journalize the entry needed to record information about the note receivable from Fast Feet for the year 2017. Assume that the entry on November 19, 2017 is correct. If an amount box does not require an entry leave it blank Round all amounts to the nearest dollar Dec. 31 4. Journalize the entry needed to record collection of the note at maturity on March 19, 2018. Assume that the entry on November 19, 2017 is correct. If an amount box does not require an entry, leave it blank. Round all amounts to the nearest dollar. Mar. 19 4. Ramon to consider that the note was issued and collected at maturty in different years Final Questions Fan-Tastic Sports Gear Inc. recorded $3,000,000 of sales tast year and projects sales to Increase by $360,000 in the current year. Last year, 80% of sales were on account, with over 400 customer accounts. Bad debt expense was $26,167. 1. Assume that Fan-Tastic Sports Gear Inc used the allowance method last year, and the allowance account at the end of the year had a debit balance of $2,240. The company estimated uncollectible accounts expense using the percent of credit sales method and expected 0.75% of credit sales to be uncollectible. What is the amount of the adjusting entry to provide for doubtfut accounts on December 317 Round all computations to the nearest dollar, 2. How much higher (lower) would Fan-Tastic Sports Gear Inc. 3 net income have been under the allowance method assumption previously shown in (1) than under the direct write off method (Enter if there is no change.) by 3. Ung the allowance method, the netre value of the receivables would appear on which cancial statement Accounts Receivable-Bart's Best Gear 5,540 21,070 31 Bad Debt Expense Accounts Receivable-Healthy Running Inc. Accounts Receivable-The Locker Room Accounts Receivable-cu's Sports Corp. Accounts Receivable-Get Your Gear Inc. Accounts Receivable-Ready-2-Go 5,250 4,100 2,780 7,050 1,890 Recording Uncollectable Receivables Review the accounts receivable transactions shown in the general Journal on the Fan-Tastic Sports Gear Inc. panel 1. How does the company appear to be handing uncollectible receivables? direct write-off method 2. You have made following observations during your review of the accounting records. In deciding whether Fan-Tastic Sports Gear Inc. is handing uncollectible receivables approprately, which of these observations are key factors in your decision a. Most of the company's sales are on account. b. An analysis of the company's accounts receivable shows more accounts will be uncollectible than last year, C. Collection agencies are routinely used. d. Company sales last year were $3,000,000 and are expected to increase by $360,000 this year. 6. Bad debt is arising expense 1. The company sells primarily to smaller businesses, who are more likely to have cash flow problems a, d 3. After making the observations previously listed in (2), you have recommended that Fan-Tastic Sports Gear Inc use the allowance method to record bad debit expense Description Debit Credit Date Jan. 17 Sales Bad Debt Expense 9,800 9,800 9,800 17 Bad Debt Expense Accounts Receivable-CI's Sports Corp. 9,800 21 Cash Bad Debt Expense Accounts Receivable-Four Seasons Sportswear Co. 10,700 2,200 12,900 Feb. 15 Accounts Receivable-Healthy Running Inc. Bad Debt Expense Sales 3,000 500 3,500 Mar. 4 Accounts Receivable-Four Seasons Sportswear Co. Bad Debt Expense 2,200 2,200 2,200 4 Cash Bad Debt Expense 2,200 5,540 13 Cash Accounts Receivable-Barb's Best Gear 5,540 21,070 31 Bad Debt Expense Accounts Receivable Healthy Running Inc. Accounts Receivable-The Locker Room Accounts Receivable CI's Sports Corp. Accounts Receivable-Get Your Gear Inc. Accounts Receivable-Ready-2-Go 5,250 4,100 2,780 7,050 1,890