Number of Days 30-60 Past Due 23 AmountCurent Customer 24 25 cc 26 DD (Not Yet Due) 60-90 Over 1-30 S 50 000 60 000 S 50 000 S 60 000 40 000 27 EE 28 FF 29 GG 30 Total 31 Percentage considered uncollectible 32 Estimated Uncollectible Accounts S 50 000 40 000 $ 240 000 S 60 000 290 S 50000 5% S 40 000 10% S 40 000 $40 000 15% S 50000 20% 35 36 Jan 1. AA had previous balance of Allowance for Doubtful Accounts ($3,700) 37 38 39 How much do they have to add to match the estimated ncollectible accounts? In other words, how much should be added to match the estimated amount you calculated above? 41 42 Jan . Please complete the jounal entry to add the amount that you calculated above to the allowance for D.A 43 Debit Credit Date Explanation 45 46 47 48 49 50 JanI. Post the allowance for doubtful accounts eutries in T-account, and show the balance 51 52 53 Don't forget the previous balance Allowance for Doubtful Account 56 57 58 59 Mar.1 Company AA sold rooms to BB on account ($4,000) Joumalyze this transaction. 61 62 Date Explanation 63 Debit Credit 65 6 Company AA found that the account receivable for BB was uncollectible Joumalyze this transaction based on allowance method Mar. 31 Debit Credit Date Explanation 6 7 Mar. 31 Post the accounts receivable entries in T-account, and show the balance at the end of March 31 Accounts Receivable 9 30 32 83 84 85 86 April 5. BB notified that they would pay cash for their debt. 87 Therefore, you need to reverse the previous journal entry to get accounts receivable back Debit Credit 89 Date Explanation 90 91 92 93 94 April 5. AA received cash and cleared the receivable from BB 95 96 97 Date Explanation 98 Journalyze this tranxaction. Debit Credit 100 101 102 103 104 104 105 106 Part II: Notes Receivable 107 108: May 1, AA sold rooms to CC (S6.000) and received a note receivable (annual interest rate: 15%, time: 3 months) 109 110 Date Explanation Joumalize this transaction DebrCedi 112 113 114 115 116 When is the maturity date? How much is the monthly interest? What is the maturity value? 118 119 120 121 122 123 124 May 31. AA's fiscal year ends on May 31 125 126 Record the adjusting entries to reflect interest income and interest receivable on May 31. Debit Credit 127 Date Explanation 128 129 130 131 132 133 134 Ou maturity date, BB paid cash to AA for note. Complete journal entry at the maturity date Debit Credit 15 Date Explanation 136 137 138 139 140 141 142
