Note Receivable In the trial balance for March, you see that Notes Receivable-Fast Feet Co. has a negative balance of $255, 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 $8,755 in payment of this note receivable. Further investigation reveals that on November 19, 20Y7, this note receivable was received from Fast Feet Co. for $8,500. 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. 365 x days 1. Term of the note: 2. Interest rate of the note: Feedback Check My Work 1. Use the equation for computing interest on a note but solve for the term. 2. Use the equation for computing interest on a note but solve for the interest rate. 3. Journalize the entry needed to record information about the note receivable from Fast Feet for the year 20Y7. Assume that the entry on November 19, 20Y7 is correct. If an amount box does not require an entry, leave it blank. Round all amounts to the nearest dollar. 8. Dec. 31 Interest Receivable y Interest Revenue Previous Check My Work Submit Assignment for Grading Save and Exit lan&Schedule C WebAdvisor Calouator OheMy 3. How much interest was eamed on this note in 20Y77 4. Journalize the entry needed to record collection of the note at maturity on March 19, 20Y8. 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 Cash Notes Recelvable-ast Feet Co. Interest Receivable Interest Revenue Feeda TChecMy W 4. Remenber to consider that the note was issued and oolected at manurity in oferent years Final Questions Fan-Tastic Sports Gear Inc. recorded $3,000,000 of sales last year and projects sales to increase by $350,000 in the current year. Last year, 80% of sales were on account, with over 300 customer accounts Bad debt expense was $26,187. 1. Assume that Fan-Tastic Sports Gear Inc. used the alowance method lest year, and the allowance account at the end of the year had a det balance of $2,190 The company estimated uncollectible accounts expense using the percent of credit sales method and expected 0.75% of credit sales to be uncollectole what a mhe amoure of Previous Check Hy Work Subit Aignment for Grding alsTO: 15 a Search or type URL etete 8. 5. T. H. option command Check My Work 4. Remember to consider that the note was issued and collected at maturity in different years. Final Questions Fan-Tastic Sports Gear Inc. recorded $3,000,000 of sales last year and projects sales to increase by $350,000 in the current year. Last year, 80% of sales were on account, with over 300 customer accounts. Bad debt expense was $26,187. 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 $2,190. 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 doubtful accounts on December 31? Round all computations to the nearest dollar. 2. How much higher (lower) would Fan-Tastic Sports Gear Inc.'s net income have been under the allowance method assumption previously shown in (1) than under the direct write-off method? (Enter "0" if there is no change.) Higher v by $ 3. Using the allowance method, the net realizable value of the receivables would appear on which financial statement? balance sheet v Feedack Check My Work 1. Review the methods for estimating uncollectible accounts. 2. Consider the types of accounts that affect net income. 3. Think about the classification of the accounts used to compute this value. Previous Check My Work Submit Assignment for Grading Save and Exit Aa 15
