PROTECTED VIEW Be careful files from the Internet can enable Editing A40 H 1 B D E G 6 7 Part 3: Accounts and Notes Receivable (6 Marks) 8 9 Nelson shares the following information on transactions that took place in the month of October 10 11 a) Notes Receivable: 12 On October 1st, Pike Place Coffee lends $10,XXX to an employee to help them with some educational expenses. The note is to be paid back by 13 March 31, 2022 with interest. The annual interest rate on the note is 8%. 14 15 REQUIRED: 16 Nelson advises you that the note has not yet been recorded. Record the journal entries for the note receivable and any 17 adjusting journal entries required at year-end. (3 Marks) 18 19 NOTE: For the last three digits of the note, update the last three numbers with the last THREE (3) digits of your student ID. 20 For example, if your Student ID is T123456, you would change the last Cree numbers to 456 and the note would be $10,456. 21 Round your calculations and journal entries to ZERO decimals places. 22 23 b) Accounts Receivable: 24 25 Sushma provides you with an aging schedule for the balance in Accounts Receivable. As all of the revenues from the cafes are paid 26 for in cash, the Accounts Receivable balance relates completely to Catering Revenues which are all credit sales. 27 Nelson advises that currently there is a So balance in the Allowance for Doubtful Accounts general ledger account. 28 Number of Days Amount Estimated 29 Outstanding Receivable Uncollectible 30 0-30 days $ 12,560 1% 31 31-60 days S 6,870 4% 32 61-90 days $ 2,845 15% 33 Over 90 days S 798 45% 34 35 REQUIRED: 36 Prepare the adjustment to Allowance for Doubtful Accounts based on the information above, 13 Marks) 37 38 RESPONSE: PROTECTED VIEW Be careful files from the Internet can enable Editing A40 H 1 B D E G 6 7 Part 3: Accounts and Notes Receivable (6 Marks) 8 9 Nelson shares the following information on transactions that took place in the month of October 10 11 a) Notes Receivable: 12 On October 1st, Pike Place Coffee lends $10,XXX to an employee to help them with some educational expenses. The note is to be paid back by 13 March 31, 2022 with interest. The annual interest rate on the note is 8%. 14 15 REQUIRED: 16 Nelson advises you that the note has not yet been recorded. Record the journal entries for the note receivable and any 17 adjusting journal entries required at year-end. (3 Marks) 18 19 NOTE: For the last three digits of the note, update the last three numbers with the last THREE (3) digits of your student ID. 20 For example, if your Student ID is T123456, you would change the last Cree numbers to 456 and the note would be $10,456. 21 Round your calculations and journal entries to ZERO decimals places. 22 23 b) Accounts Receivable: 24 25 Sushma provides you with an aging schedule for the balance in Accounts Receivable. As all of the revenues from the cafes are paid 26 for in cash, the Accounts Receivable balance relates completely to Catering Revenues which are all credit sales. 27 Nelson advises that currently there is a So balance in the Allowance for Doubtful Accounts general ledger account. 28 Number of Days Amount Estimated 29 Outstanding Receivable Uncollectible 30 0-30 days $ 12,560 1% 31 31-60 days S 6,870 4% 32 61-90 days $ 2,845 15% 33 Over 90 days S 798 45% 34 35 REQUIRED: 36 Prepare the adjustment to Allowance for Doubtful Accounts based on the information above, 13 Marks) 37 38 RESPONSE