Answered step by step
Verified Expert Solution
Question
1 Approved Answer
NEED ASAP DUE TONIGHT NEED HELP WITH BAD DEBT EXPENSE ENTRY IT IS COUNTED WRONG PLEASE AND THANK YOU!!! On December 31, 2020. Sunland Company
NEED ASAP DUE TONIGHT NEED HELP WITH BAD DEBT EXPENSE ENTRY IT IS COUNTED WRONG PLEASE AND THANK YOU!!!
On December 31, 2020. Sunland Company borrowed $60,888 from Paris Bank, signing a 5 year. $102,600 zero-interest-bearing note. The note was issued to yield 11% interest. Unfortunately, during 2022. Sunland began to experience financial difficulty. As a result, at December 31, 2022, Paris Bank determined that it was probable that it would receive back only $76,950 at maturity. The market rate of interest on loans of this nature is now 12%. Prepare the entry to record the issuance of the loan by Paris Bank on December 31, 2020. (Round present value factor calculations to 5 decimal places, eg. 1.25124 and final answers to decimal places, eg: 5.275. If no entry is required, select "No Entry for the account titles and enter for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually) Date Account Titles and Explanation Debit Credit Dec. 31. 2020 Notes Receivable 102600 Discount on Notes Receivable 41712 Cash 60858 Your answer is partially correct. Prepare the entry, if any, to record the impairment of the loan on December 31, 2022 by Paris Bank. (Round present value factor calculations to 5 decimal places, eg. 125124 and final answers to decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Credit account tities are automatically indented when the amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation 75020 Dec. 31. 2022 Bad Debt Expense 75020 Allowance for Doubtful Accounts Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started