On December 31, Jarden Co.'s Allowance for Doubtful Accounts has an unadjusted credit balance of $14,500. Jarden prepares a schedule of its December 31 accounts receivable by age.

Accounts Receivable		Age of Accounts Receivable	Expected Percent Uncollectible
$	840,000	Not yet due	1.25	%
	336,000	1 to 30 days past due	2.00
	67,200	31 to 60 days past due	6.50
	33,600	61 to 90 days past due	32.75
	13,440	Over 90 days past due	68.00

Required: 1. Compute the required balance of the Allowance for Doubtful Accounts at December 31.

2. Prepare the adjusting entry to record bad debts expense at December 31. (Round percentage answers to nearest whole percent. Do not round intermediate calculations.)

No	Date	General Journal	Debit	Credit
1	Dec 31	Bad debts expense
		Allowance for doubtful accounts

3. On June 30 of the next year, Jarden concludes that a customers $3,850 receivable is uncollectible and the account is written off. Does this write off directly affect Jarden's net income?

The following transactions are from Ohlm Company. (Use 360 days a year.) Year 1

Dec.		16		Accepted a $11,500, 60-day, 9% note in granting Danny Todd a time extension on his past-due account receivable.
		31		Made an adjusting entry to record the accrued interest on the Todd note.

Year 2

Feb.		14		Received Todds payment of principal and interest on the note dated December 16.
Mar.		2		Accepted a(n) $6,000, 9%, 90-day note in granting a time extension on the past-due account receivable from Midnight Co.
		17		Accepted a(n) $3,400, 30-day, 7% note in granting Ava Privet a time extension on her past-due account receivable.
Apr.		16		Privet dishonored her note.
May		31		Midnight Co. dishonored its note.
Aug.		7		Accepted a(n) $8,750, 90-day, 10% note in granting a time extension on the past-due account receivable of Mulan Co.
Sep.		3		Accepted a(n) $3,650, 60-day, 10% note in granting Noah Carson a time extension on his past-due account receivable.
Nov.		2		Received payment of principal plus interest from Carson for the September 3 note.
Nov.		5		Received payment of principal plus interest from Mulan for the August 7 note.
Dec.		1		Wrote off the Privet account against the Allowance for Doubtful Accounts.

Required: 1-a. First, complete the table below to calculate the interest amount at December 31, Year 1. 1-b. Use the calculated value to prepare your journal entries for Year 1 transactions. 1-c. First, complete the table below to calculate the interest amounts. 1-d. Use those calculated values to prepare your journal entries for Year 2 transactions. 2. If Ohlm pledged its receivables as security for a loan from the bank, where on the financial statements does it disclose this pledge of receivables?