Notes Receivable:

As payment for services rendered, your company received an $18-$month note on $1-1-24.$ The face amount of the note is $$1000$ and the stated rate of interest is $8\%,$ compounded annually. The stated rate equals the market rate. The full amount of the note, including accrued interest, will be received at the end of the $18-$month period. Make all relevant journal entries.

As payment for services rendered, your company received a $24-$month note on $1-1-24.$ The face amount of the note is $$1000$; the note is noninterest bearing. The cash price of the services rendered is $$857.$ The market rate of interest is $8\%,$ compounded annually. The $$1000$ face amount will be receivedat the end of the $24-$month period. Make all relevant journal entries.

Ch$07.$xlsx $+$

July $32024,10$:$37$ AM

SWUTH MORE CLOTHNG CORPORATION

General Journal

Aceount

Requirement $1$:

Doblt

Crealt

Morliy bad obtr expense aconed summay.

Bad Debt Expense

Allowance for uncollectible accounts

To recard year $2021$ accounts recoivable wrib$-$aff.

Alowance for uncollectible accounts

Accounts recelvable

Requirement $2$:

Account

Debli $,$ Credit

$\backslash$table$[[$Bad debt expense$],[\backslash$table$[[$Alowance for uncolectible accounts$],[($Calculate below$)]]],[$Summary$],[$Age Group,Amount,$\backslash$table$[[$Percent$],[$Uncallectlble$]],\backslash$table$[[$Estimated$],[$Allowance$]]],[0-60$ days,,$4\%,],[61-90$ days,,$15\%,],[91-120$ days,,$25\%,],[$Over $120$ days,,$40\%,],[$Totals$,,,]]$

Allowance for uncollectible accounts analysls:

Beginning balance

Add: Monthly bad debt accruals

Deduct: Wite$-$offs

Balance before year$-$end adjustments

Required allowance $($determined above$)$

Required year$-$end increase in allowance

Requirement $3$:

Bad debt expense for $2021$:

Monthly accruals

Year$-$end adjustment

Total $$

SWATHMORE CLOTHING CORPORATION

Balance Sheet

Ourrent Assets:

Accounts Recelvable, net of $$68,900$ allowance for uncolectible accounts