Part A (6 marks) At December 31, 2021, the end of the annual reporting period, the accounts of Huron Company showed the following: a. Sales revenue for 2021, $2,950,000, of which one-quarter was on credit. b. Allowance for doubtful accounts, balance January 1,2021, $22,700 credit. c. Accounts receivable, balance December 31, 2021 (prior to any write-offs of uncollectible accounts during 2021), $383,400. d. Uncollectible accounts to be written off, December 31, 2021, $19,800. These accounts are all in the "past due over 90 days" category. e. Aging schedule at December 31, 2021, showing the following breakdown of accounts receivable (prior to any write-offs of uncollectible accounts during 2021): Status Not past due Amount $210,800 Past due 1-60 days 60,000 Past due over 60 days 89,100 Past due over 90 days Required: 23,500 1. Determine the year-end balance in the allowance for doubtful accounts, assuming the following the bad debt loss rate on aging schedule: not past due, 0.8%; past due 1-60 days, 1.8%; past due over 60 days, 11%; and past due over 90 days, 80%. (Hint: subtract the $19,800 receivables write-off from the past due over 90 days amount) [2 marks] 2. Give the 2021 adjusting entry to record bad debt expense. (2 marks) Debit Credit 3. Show the amount that would be reported on the 2021 statement of financial position relating to net accounts receivable. (2 marks) Part B. (6 marks). Erie Corp. has accounts receivable of $460,000. The company transfers these accounts receivable to a financial institution. There are no bad debts associated with these accounts receivable. Proceeds of $444,500 are received from the transfer. The transfer is on a non-notification basis, which means that the customers pay Erie and Erie remits the cash to the financial institution. The customers pay $460,000 to Erie on schedule, and the cash remittance is forwarded to the financial institution. Required: Record the journal entries for Erie Corp. on the date of the transfer, assuming: Case A. The transfer is recorded as a sale/derecognition by Erie Corp. (3 marks) Debit Credit Case B. The transfer is recorded as a borrowing by Erie Corp. (3 marks) Debit Credit Part C (6 marks). Delta sold a piece of equipment at the beginning of 2020, receiving a $10,000, two-year 1% (annual coupon rate) note. Interest is paid at the end of each year. The market interest rate for this kind of note is 6%. Round to the nearest dollar. Required: 1. Calculate the present value of the note receivable. You may use the present value tables at the end of the exam or your financial calculator.(2 marks) 2. Prepare entry to record the sale of equipment by Delta. (2 marks) Debit Credit 3. Prepare the entry to record the interest collection by Delta at the end of 2020. (2 marks) Debit Credit