Please use excel format

1.(a)Prepare the entries for estimated bad debts assuming that doubtful accounts are estimated to be (1) 6% of gross accounts receivable and (2) 1% of net sales. (b)Assume that all the information above is the same, except that the Allowance for Doubtful Accounts has a debit balance of $12,500 instead of a credit balance. How will this difference affect the journal entries in part (a) under both methods? (show the new journal entries)

2.Prepare the journal entry required on Dexter's books on May 1. (b)Prepare the journal entry required on Quick Finance?s books on May 1. (c)Assume Dexter factors the $1,400,000 of accounts receivable with Quick Finance on a with recourse basis instead. The recourse provision has a fair value of 1.36% of the accounts receivable. Prepare the journal entry required on Dexter?s and Quick?s books on May 1.

3.Prepare the bank reconciliation for ABC Corp?s checking account at December 31. You will have to compute the balance per books. Propose any necessary journal entries.

ACCTG 331, Intermediate Accounting I Simulation 2 (30 points) Section __________________________ Groups number - N/A Name(s) _________________________ __________________________ __________________________ _____________________________ _____________________________ Prepare responses to the following using Excel. Please send your simulation to bkawada@mail.sdsu.edu and nma1691@gmail.com by 4:00 p.m. on Monday, March 14. Time submitted is based on the time stamp in my inbox. One submission per group. Any late submissions will be penalized accordingly. Question 1 Entries for bad debt expense. The trial balance before adjustment of Risen Company reports the following balances: Credit Sales $ 1,800,000 Accounts Receivable 1,156,000 Selling Expenses 450,000 Sales Discounts 33,200 Allowance for Doubtful Accounts 37,300 Sales Returns and Allowances 56,000 Purchase Discounts 45,250 Cost of Goods Sold 720,000 Instructions (a) Prepare the entries for estimated bad debts assuming that doubtful accounts are estimated to be (1) 6% of gross accounts receivable and (2) 1% of net sales. (b) Assume that all the information above is the same, except that the Allowance for Doubtful Accounts has a debit balance of $12,500 instead of a credit balance. How will this difference affect the journal entries in part (a) under both methods? (show the new journal entries) Question 2 Factoring Accounts Receivable. On May 1, Dexter, Inc. factored $1,400,000 of accounts receivable with Quick Finance on a without recourse basis. Under the arrangement, Dexter was to handle disputes concerning service, and Quick Finance was to make the collections, handle the sales discounts, and absorb the credit losses. Quick Finance assessed a finance charge of 6.12% of the total accounts receivable factored and retained an amount equal to 2.43% of the total receivables to cover sales discounts. Instructions (a) Prepare the journal entry required on Dexter's books on May 1. (b) Prepare the journal entry required on Quick Finance's books on May 1. (c) Assume Dexter factors the $1,400,000 of accounts receivable with Quick Finance on a with recourse basis instead. The recourse provision has a fair value of 1.36% of the accounts receivable. Prepare the journal entry required on Dexter's and Quick's books on May 1. Question 3 ABC Corp's bank statement for their main checking account showed a balance of $13,651.73 at December 31. Note the following information: The checking account earned $45.38 interest for the month of December. ABC did not know of this amount until receiving the bank statement. The account has outstanding checks of $1,385.13 Cash receipts received by ABC on 12/31 of $1,965.27 were not deposited until 1/2 A check for a downtown rental property was correctly recorded by the bank at $647, but recorded by ABC as $746 ABC paid a vendor $258.37 for goods purchased on credit, but recorded the amount as $528.73 Based on an authorized arrangement, the bank withdrew $2,535 to pay for a mortgage on ABC headquarters, with the interest portion of that payment being $1,159. ABC has not recorded an entry for this Misc interest charged to ABC of $23.68 on the bank statement was not known until receiving the statement. Bank service charges of $12 for December were listed on the bank statement A deposit recorded by the bank in the amount of $467 should be for CBA Corp The bank statement included an NSF check from an ABC customer by in the amount of $146. In addition, the bank charged a $19.95 fee for the NSF check. The company plans to collect from this customer, and bill the customer for this fee Prepare the bank reconciliation for ABC Corp's checking account at December 31. You will have to compute the balance per books. Propose any necessary journal entries