Need help with accounting homework, document is attached.

Assignment 9.1 Handout 1. Consider accounts receivable and notes receivable. Requirement R1. What is the difference between accounts receivable and notes receivable? 2. Consider internal control over receivables collections. Requirement R1. What job must be withheld from a company's credit department in order to safeguard its cash? If the credit department does perform this job, what can a credit department employee do to hurt the company? 3. During its first year of operations, World Class Sport Shoes earned revenue of $388,000 on account. Industry experience suggests that bad debts will amount to 4% of revenues. At December 31, 2012, accounts receivable total $35,000. The company uses the allowance method to account for uncollectibles. Requirements R1. Journalize World Class' sales and uncollectible-account expense using the percent-of-sales method. R2. Show how to report accounts receivable on the balance sheet at December 31, 2012. Use the long reporting format illustrated in the chapter. 4. The Accounts receivable balance for Turning Leaves Furniture Restoration at December 31, 2010, was $15,000. During 2011, Turning Leaves completed the following transactions: Requirement R1. Journalize Turning's 2011 transactions. 5. Spring Garden Flowers had the following balances at December 31, 2011, before the year-end adjustments: The aging of accounts receivable yields the following data: Requirements R1. Journalize Spring's entry to adjust the allowance account to its correct balance at December 31, 2011. R2. Prepare a T-account to compute the ending balance of Allowance for uncollectible accounts. 1 6. Sheena Stone is an attorney in Los Angeles. Stone uses the direct write-off method to account for uncollectible receivables. At November 30, 2010, Stone's accounts receivable totaled $21,000. During December, she earned revenue of $24,000 on account and collected $23,000 on account. She also wrote off uncollectible receivables of $1,440 on December 31, 2010. Requirements R1. Use the direct write-off method to journalize Stone's write-off of the uncollectible receivables. R2. What is Stone's balance of Accounts receivable at December 31, 2010? Does Stone expect to collect the total amount? 7. Foley's Furniture Repair had trouble collecting its account receivable from Steve Stone. On July 19, 2012, Foley's finally wrote off Stone's $900 account receivable. Foley's turned the account over to an attorney, who hounded Stone for the rest of the year. On December 31, Stone sent a $900 check to Foley's Furniture Repair with a note that said, \"Here's your money. Please call off your bloodhound!\" Requirement R1. Journalize the entries required for Foley's Furniture Repair. 8. Lakeland Medical Center included the following items in its financial statements: Requirements R1. How much net income did Lakeland earn for the month? R2. Show two ways Lakeland can report receivables on its classified balance sheet. 9. (L.OBJ. 6) Recording credit-card and bankcard sales [5 min] Restaurants do a large volume of business by credit cards and bankcards. Suppose Salad Company restaurant had these transactions on January 28, 2011: Suppose National Express charges merchants 2.00% and ValueCard charges 1.50%. Requirement R1. Journalize these sale transactions for the restaurant. 2 10. A table of notes receivable for 2012 follows: Requirement R1. For each of the notes receivable, compute the amount of interest revenue earned during 2012. Use a 360-day year, and round to the nearest dollar. 11. Lantana Bank & Trust Company lent $90,000 to Sylvia Peters on a 30-day, 11% note. Requirement R1. Journalize the following transactions for the bank (explanations are not required): 12. West Highland Clothiers reported the following items at August 31, 2012 (amounts in thousands, with last year's2011amounts also given as needed): Requirement R1. Compute West Highland's (a) acid-test ratio and (b) days' sales in average receivables for 2012. Evaluate each ratio value as strong or weak. West Highland sells on terms of net 30. 3 13. At December 31, 2012, the Accounts receivable balance of Solar Energy Manufacturing is $170,000. The Allowance for doubtful accounts has a $10,100 credit balance. Solar Energy Manufacturing prepares the following aging schedule for its accounts receivable: Requirements R1. Journalize the year-end adjusting entry for doubtful accounts on the basis of the aging schedule. Show the T-account for the Allowance for uncollectible accounts at December 31, 2012. R2. Show how Solar Energy Manufacturing will report Accounts receivable on its December 31, 2012, balance sheet. 14. At September 30, 2011, Eagle Mountain Flagpoles had Accounts receivable of $33,000 and Allowance for uncollectible accounts had a credit balance of $4,000. During October 2011, Eagle Mountain Flagpoles recorded the following: Requirements R1. Journalize sales, collections, uncollectible-account expense using the allowance method (percent-of-sales method), and write-offs of uncollectibles during October 2011. R2. Prepare T-accounts to show the ending balances in Accounts receivable and Allowance for uncollectible accounts. Compute net accounts receivable at October 31. How much does Eagle Mountain expect to collect? R3. Show how Eagle Mountain Flagpoles will report Accounts receivable on its October 31, 2011, balance sheet. 15. On April 30, 2011, Statewide Bank loaned $80,000 to Kelsey Sperry on a one-year, 11% note. Requirements R1. Journalize all entries related to the note for 2011 and 2012. R2. Which party has a a. Note receivable? b. Note payable? c. Interest revenue? d. Interest expense? R3. How much in total would Sperry pay the bank if she pays off the note early on November 30, 2011? 4 16. Abanaki Carpets reported the following amounts in its 2011 financial statements. The 2010 figures are given for comparison. Requirements R1. Calculate Abanaki's acid-test ratio for 2011. Determine whether Abanaki's acidtest ratio improved or deteriorated from 2010 to 2011. How does Abanaki's acid-test ratio compare with the industry average of 0.80? R2. Calculate the days' sales in receivables for 2011. How do the results compare with Abanaki's credit terms of net 30? 5