PART A

PART B

Marigold Corp's balance sheet at December 31, 2016, included the following. Note receivable $780,000 Interest receivable 22,000 Accounts receivable 1,410,000 Less: Allowance for doubtful accounts receivable 92,000 1,318,000 $2,120,000 The following occurred in 2017. 1. Marigold made sales of $10,600,000. All sales were credit sales. Marigold allows some discounts for early payment of receivables and uses the gross method to record sales. 2. Customer accounts of $84,250 were written off during the year. 3. Accounts receivable of $10,700,000 were collected. Collections for the year included $260,000 of accounts on which sales discounts were allowed. 4. $12,000 was received in payment of an account which was written off the books as worthless in 2016. 5. At year-end (December 31, 2017), Marigold estimated that its Allowance for Doubtful Accounts needed a balance of $74,000. This estimate is based on an analysis of aged accounts receivable. 6. The note receivable and related interest were due January 1, 2017. Young collected both, in full, on that date. Prepare all journal entries necessary to reflect the transactions above. (Credit account titles are automatically indented when the is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) No. Account Titles and Explanation Debit Credit 1. 2. 2. 3. 4. (To record entry to reinstate the accounts receivable) 5. 6. (To record entry to reinstate the accounts receivable) (To record the collection on account) Sarasota Co. uses the gross method to record sales made on credit. On June 1, 2020, it made sales of $55,000 with terms 4/15, n/45. On June 12, 2020, Sarasota received full payment for the June 1 sale. Prepare the required journal entries for Sarasota Co. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit