PRACTICE PROBLEM 1 March 7 Received 170-day note from ABC who owed $700,000. The note bears interest of 10%. 29 days after receiving the note, the note was discounted at 8% and endorsed with recourse. Required: What is the face value of the note? What are the maturity date and value of the note? Make entries for the receipt of the note. On What date was the note discounted? What is the discount period? What is the discount amount? What is the proceed from the bank upon discounting the note? Assuming the undiscounted note was honored on the maturity date, make necessary entries on the maturity date of the note, if any is necessary. Assuming the undiscounted note was dishonored on the maturity date, make necessary entries on the maturity date of the note, if any is necessary. Assuming the discounted note was honored, make necessary entries on the maturity date if any is necessary. Assuming the discounted note was dishonored, make necessary entries on the maturity date if any is necessary. PRACTICE PROBLEM 2 ABC Company had the following balances prior to making adjusting entries Accounts Receivable $800,000 Allowance for Doubtful Accounts (Cr.) $100,000 Sales $800.000 Accounts Receivable used as the basis for making provision for bad debts. Assuming the company provides for doubtful accounts at 1% of Accounts Receivable Balance, make necessary entries to provide for doubtful accounts. What is the balance in the Allowance for Doubtful Accounts after the adjusting entries in item a above, and what is the net realizable value of accounts receivable? A customer owing $15.000 defaulted and it was approved that the customer's account be written off. Make necessary entries for the write off. Subsequently, the customer whose account was written off paid $12,000 of the amount previously written off. Make necessary entries for the recovery of the 12,000. At this point, what is the balance in the allowance for doubtful accounts? Using Sales as the basis for making provision for bad debts. Assuming the company provides for doubtful accounts at 1% of Sales, make necessary entries to provide for doubtful accounts. What is the balance in the Allowance for Doubtful Accounts after the adjusting entries in item a above