On July 9, 2018, Omar Co. purchased a machine for 260,000 SA from Saudi Machine Company (SMC). Omar gave SMC 7% note due in 120 days in payment for the machine. (5 Points)

What is the maturity date of the note?

How much interest will Omar pay to SMC on this note?

Pass the Journal entry for Notes Receivable transaction.

On October 16, 2018, Omar informs us that the company is unable to pay the note or interest?

What adjusting entry is required on December 2018?

On October 31, 2017, Aziz Company sells a truck that originally cost 140,000 SA for 95,000 SA cash. The truck was placed in service on January 1, 2012. It was depreciated using the straight-line method with an estimated salvage value of 28,000 and a useful life of 10 years. Record all the transactions? (2.5 points)

The trial balance before adjustment of XYZ Company reports the following balances: (2.5 points)

Dr. Cr.

Accounts receivable $100,000

Allowance for doubtful accounts $ 2,500

Sales (all on credit) 750,000

Sales returns and allowances 40,000

Instructions

Pass the journal entries for estimated bad debts assuming that doubtful debts accounts are estimated to be

(1) 6% of gross accounts receivable and

(2) 1% of net sales.