On December 31, 2017, RCA Company's Allowance for Doubtful Accounts had an unadjusted debit balance of $7,800. The accountant for RCA has prepared a schedule of the December 31, 2017, accounts receivable by age and, on the basis of past experience, has estimated the percentage of the receivables in each age category that will become uncollectible. This information is summarized as follows: December 31, 2017 Age of Expected Percentage Accounts Receivable Accounts Receivable Uncollectible $620,000 Not due (under 30 days) 1.75% 355,600 1 to 30 days past due 2.5 91,000 31 to 60 days past due 8.5 11,500 61 to 90 days past due 35 7,600 Over 90 days past due 60 Required 1. Calculate the amount that should appear in the December 31, 2017, balance sheet as the Allowance for Doubtful Accounts. Percentage Allowance for Doubtful Age of Accounts Receivable Balance Uncollectible Accounts 2. Prepare the journal entry to record bad debt expense for 2017. Date Account Titles Debit Credit Analysis Component: On July 31, 2018, RCA concluded that a customer's $4,200 receivable (created in 2017) was uncollectible and that the account should be written off. What effect will this action have on RCA's 2018 profit? Explain your answer.Tundra Tours runs tundra buggy expeditions in northern Manitoba for tourists to catch a glimpse of the abundant caribou, polar bears, and other wildlife. Tundra purchased a tundra h-ugg},r on October 19, 201?, for cash of $145,000. Its estimated useful life is five years or 100,000 kilometres with a residual value estimated at $25,000. Tundra Tours' yearend is December 31. Required Calculate depreciation expense for each scal year of the asset's useful life by completing a schedule with the following headings (round calculations to the nearest whole dollar): Depreciation Method: Y\" " Straightline Doubledeclining balance Unitsofproduction 201'! 2018 2019 2020 2021 2022 Totals 1 Deprecation is calculated to the nearest month 2 Assumes actual kilometres of use were 2017, 5,800; 2018, 19,400; 2019, 22,850; 2020, 2S,T00;2021, 19,980; 2022, 14,600. Work space : On January 1, 2017, Ultra Green Packaging purchased a used machine for $156,000. The next day, it was repaired at a cost of $4,068 and mounted on a new platform that cost $5,760. Management estimated that the machine would be used for seven years and would then have a $21,600 residual value. Depreciation was to be charged on a straight-line basis to the nearest whole month. A lll year's depreciation was charged on December 31, 2017, through to December 31, 2021, and on April 1, 2022, the machine was retired from service. Required 1. Prepare journal entries to record the purchase of the machine, the cost of repairing it, and the installation. Assume that cash was paid. 2. Prepare entries to record depreciation on the machine on December 31, 2017, and on April 1, 2022 (round calculations to the nearest whole dollar). 3. Prepare entries to record the retirement of the machine under each of the following unrelated assumptions: a. It was sold for $36,000. b. It was sold for $60,000. c. It was destroyed in a re and the insurance company paid $24,000 in lll settlement of the loss claim. Date Account Titles Debit Credit 2017 Feb. 4 Purchased merchandise on credit from Shape Products for $68.600. The terms were 2/10. n/60. Assume Brad uses a perpetual inventory system; Ignore sales taxes. Mar. Borrowed $215,000 from the First Provincial Bank by signing a note payable for 30 days at 3.5%. Apr. Paid the First Provincial Bank note. Gave Shape Products $18,600 cash and a $50,000, 30-day. 5%% note to secure an extension on Brad's pastdue account. May 5 Paid the note given to Shape on April 5. NOV. 16 Borrowed $216,000 at First Provincial Bank by signing a note payable for 60 days at 4%. DOC. 1 Borrowed money at the Bank of Montreal by giving a $300,000, 90-day. 5% note payable. 31 Recorded an adjusting entry for the accrual of interest on the note to the First Provincial Bank. 31 Recorded an adjusting entry for the accrual of interest on the note to the Bank of Montreal. 2018 Jan. 15 Paid the November 16 note to First Provincial Bank. Mar. 1 Paid the principal and interest on the December 1 note given to the Bank of Montreal. Required: Brad's Building Supplies entered into the following transactions involving current liabilities during 2017 and 2018. Date Account Titles Debit CreditAaron Servicing showed the following partial unadjusted results at October 31, 2017, its year-end: Account Debit Credit Sales ........ $1,650,000 Accounts receivable....... . ...... $148,000 Allowance for doubtful accounts .... 3,200 Part 1 Required a. Assuming Aaron estimates bad debts to be 1.5% of sales, prepare the adjusting entry at October 31, 2017. Date Account Titles Debit Credit b. Show how accounts receivable would be shown on the October 31, 2017, balance sheet using your calculations in (a). Aaron Servicing Allowance for Doubtful Accounts Partial Balance Sheet October 31, 2017Part 2 Required c. Instead of (a), assume that Aaron estimates bad debts to be 5% of outstanding accounts receivable. Prepare the adjusting entry at October 31, 2017. Date Account Titles Debit Credit d. Show how accounts receivable would be shown on the October 31, 2017, balance sheet using your calculations m (c). Aaron Servicing Allowance for Doubtful Accounts Partial Balance Sheet October 31, 2017