PLEASE HAVE A NEAT AND ORGANIZED SOLUTION.
April Ltd. reported various selected balances in its 31 December 20X7 unadjusted trial balance: Accounts receivable Special accounts receivable Accounts receivable U.S. Allowance for doubtful accounts Allowance for sales discounts $1,860,000 dr. 237,000 dr. 116,000 dr 164.350 C 46,500 Cr The following transactions and events are noted: 1. An analysis of accounts receivable indicates that $860,000 are still in the discount period. An allowance of $86,000 is needed for sales discounts 2. An analysis of accounts receivable indicated that $204,000 of accounts recevable should be written off of the remaining balance, 80% was current, and, after the allowance for sales discounts, approximately 5% was deemed doubtful of the 20% noncurrent, 75% was doubtful 3. The U.S. account receivable was recorded when the exchange rate was $116. The exchange rate at year-end was $113, 4. The special account receivable was a single account receivable from a customer with an excellent credit rating that was transferred to a financial institution at a discount rate of 5% during the period. The cash collected from the financial institution was credited to an account called "Miscellaneous credits." Management has determined that this transaction was to be recorded as a sale/derecognition but has not yet made the necessary entry 5. The company has a note receivable that has not yet been recorded. The note is a $76,000, three-year note that bears an interest rate of 5%. Interest is paid annually. The note was issued on 1 November 20x7 because of a sale. The market interest rate for accounts of this risk is 10% (PV of $1. PVA of S1, and PVAD of $1.) (Use appropriate factor(s) from the tables provided.) Required: Provide journal entries to reflect the above items. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Round time value factor to 5 decimal places and final answers to the nearest whole dollar amount.) (PV of $1. PVA of $1, and PVAD of $1.) (Use appropriate factor(s) from the tables provided.) Required: Provide journal entries to reflect the above items. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round time value factor to 5 decimal places and final answers to the nearest whole dollar amount.) View transaction list View journal entry worksheet No Transaction Debit Credit 1 01 General Journal Sales discounts Allowance for sales discounts 2 02(a) Allowance for doubtful accounts Accounts receivable 3 02(b) Bad debt expense Allowance for doubtful accounts 4 03 Exchange loss Account receivable - US 5 04 Miscellaneous credits Financing expense Special accounts receivable 6 05(a) Notes receivable Sales Discount on notes receivable 7 05(b) Interest receivable Discount on notes receivable Interest revenue
