n Assignment SCREEN PRINTER VERSION BACK Brief Exercise 7-2 Ivanhoe Co. uses the gross method to record sales made on credit. On June 1, 2017, it made sales of $58,200 with terms 2/15, n/45. On June 12, 2017, Ivanhoe received full payment for the June 1 sale. Prepare the required journal entries for Ivanhoe Co. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Aeceunt Titles aad Esplanstien Debit Credit lane I June 12 Metlock, Inc. had net sales in 2017 of $1,491,200. At December 31, 2017, before adjusting entries, the balances in selected accounts were Accounts Receivable $229,200 debit, and Allowance for Doubtful Accounts $1,944 debit. Assume that 12% of accounts receivable will prove to be uncollectible. Prepare the entry to record bad debt expense. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Accoest Titles and Explanation Debit Credit Dec. 31, 2017 Metlock, Inc. had net sales in 2017 of $1,491,200. At December 31, 2017, before adjusting entries, the balances in selected accounts were Accounts Receivable $229,200 debit, and Allowance for Doubtful Accounts $4,160 credit. Assume Metlock prepares an aging schedule that estimates total uncollectible accounts at $33,100. Prepare the entry to record bad debt expense. (If no entry is required, select ""No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Date Accoent Titdes and Explanation Credit Dec. 31, 2017 Brief Exercise 7-8 Leon Acrobats lent $26,307 to Donaldson, Inc., accepting Donaldson's 2-year, $33,000, zero-interest-bearing note. The implied interest rate is 12%. Prepare Leon's journal entries for the initial transaction, recognition of interest each year, and the collection of $33,000 at maturity. (Round answers to 0 decimal places, e.g. 5,275 If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually No. Account Titles and Esplanation To record the initial transations) 2. (To record the recognition of interest in year one) (To recognize the interest in year 2) To record the collection of the note) Brief Exercise 7-8 Leon Acrobats lent $26,307 to Donaldson, Inc., accepting Donaldson's 2-year, $33,000, zero-interest-bearing note. The implied interest rate is 12%. Prepare Leon's journal entries for the initial transaction, recognition of interest each year, and the collection of $33,000 at maturity. (Round answers to 0 decimal places, e.g. 5,275 If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually No. Account Titles and Esplanation To record the initial transations) 2. (To record the recognition of interest in year one) (To recognize the interest in year 2) To record the collection of the note) Exercise 7-12 Presented below is information related to Sunland Corp., which sells merchandise with terms 2/10, net/60 Sunland Corp. records its sales and receivables net. u Sunland Corp. sold to Warren Harding Co. merchandise having a sales price of $16,000 Accounts receivable of $15,000 (gross) are factored with Andrew Jackson Credit Corp. without recourse at a financing charge of 8%. Cash is received for the proceeds; collections are handled by the finance company. (These accounts were all past the discount period.) 9Specific accounts receivable of $15,000 (gross) are pledged to Alf Landon Credit Corp. as security for a loan of $6,900 at a finance charge of 7% of the amount of the loan. The finance company will make the collections. (All the accounts receivable are past the discount period.) Dec. 29 Warren Harding Co. notifies Sunland that it is bankrupt and will pay only 10% of its account. Give the entry to write off the uncollectible balance using the allowance method. (Note: First record the increase in the receivable on July 11 when the discount period passed.) Prepare all necessary entries in general journal form for Sunland Corp. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem) Date Account Titles and Explanation /S To record discount forfeited) 7/9 To record notes payable) Exercise 7-19 Teal Corp. factors $365,000 of accounts receivable with Flint Finance Corporation on a without recourse basis on July 1, 2017. The receivables records are transferred to Flint Finance, which will receive the collections. Flint Finance assesses a finance charge of 1.50% of the amount of accounts receivable and retains an amount equal to 6% of accounts receivable to cover sales discounts, returns, and allowances. The transaction is to be recorded as a sale. Prepare the journal entry on July 1, 2017, for Teal Corp. to record the sale of receivables without recourse. (IF no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date eceast Ticles and Esplanatie July 1, 2017 Debit Credit Prepare the journal entry on July 1, 2017, for Flint Finance Corporation to record the purchase of receivables without recourse. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date cceast Titles and Esplanatie Debit Credit uly 1, 2017