Q1: (a) Wilson corporation uses the balance sheet approach to estimate uncollectible accounts expense. At year-end an aging of the accounts receivable produced the following five groupings. Not yet due 560,000 1-30 days past due 125,000 31-60 days past due 65,000 61-90 days past due 45,000 Over 90 days past due 75.000 Total 870,000 On the basis of past experience, the company estimated the percentages probably uncollectible for the five age groups to be as follows: Group a, 3 percent: Group b, 5 percent; Group c, 10 percent; Group d, 12 percent; and Group e. (last two digits of registration number) percent. The Allowance for Doubtful Accounts before adjustments at December 31 showed a credit balance of S(last four digits of your registration number), Instructions a. Compute the estimated amount of uncollectible accounts based on the above classification by age groups. b. Prepare the adjusting entry needed to bring the Allowance for Doubtful Accounts to the proper amount Assume that on January 20 of the following year, Wilson learned that an account receivable that had originated on September 1 in the amount of Slast four digits of your registration number) was worthless because of the bankruptcy of the client, May Flowers. Prepare the journal entry required on January 20 to write off this account (b) Reddick Corporation purchased new machine for its plant on June 1, 2018. The machine is expected to have a (last digit of your registration number)-year life and no residual value. The following expenditures were associated with the purchase. Cost of the machine $12,000 Page 1 of 4 Freight Charges 475 Sales taxes 650 Installation of machine 85 Cost to repair machine damaged during installation 500 Instructions 1. Compute depreciation expense for the years 2018 through 2021 under each depreciation method listed. Straight-line, with fractional years rounded to the nearest whole month and 200 percent declining balance, using the half-year convention. 2. Assume that Reddick Co., sold the old machine that was being replaced. The old machine had originally cost $4,000. Its book value at the time of the sale was $500. Record the sale of the old machine under the following conditions. The machine was sold for S(last three digits of your registration number) cash. The machine was sold for $350 cash. (5+5=10 Marks) Q1: (a) Wilson corporation uses the balance sheet approach to estimate uncollectible accounts expense. At year-end an aging of the accounts receivable produced the following five groupings. Not yet due 560,000 1-30 days past due 125,000 31-60 days past due 65,000 61-90 days past due 45,000 Over 90 days past due 75.000 Total 870,000 On the basis of past experience, the company estimated the percentages probably uncollectible for the five age groups to be as follows: Group a, 3 percent: Group b, 5 percent; Group c, 10 percent; Group d, 12 percent; and Group e. (last two digits of registration number) percent. The Allowance for Doubtful Accounts before adjustments at December 31 showed a credit balance of S(last four digits of your registration number), Instructions a. Compute the estimated amount of uncollectible accounts based on the above classification by age groups. b. Prepare the adjusting entry needed to bring the Allowance for Doubtful Accounts to the proper amount Assume that on January 20 of the following year, Wilson learned that an account receivable that had originated on September 1 in the amount of Slast four digits of your registration number) was worthless because of the bankruptcy of the client, May Flowers. Prepare the journal entry required on January 20 to write off this account (b) Reddick Corporation purchased new machine for its plant on June 1, 2018. The machine is expected to have a (last digit of your registration number)-year life and no residual value. The following expenditures were associated with the purchase. Cost of the machine $12,000 Page 1 of 4 Freight Charges 475 Sales taxes 650 Installation of machine 85 Cost to repair machine damaged during installation 500 Instructions 1. Compute depreciation expense for the years 2018 through 2021 under each depreciation method listed. Straight-line, with fractional years rounded to the nearest whole month and 200 percent declining balance, using the half-year convention. 2. Assume that Reddick Co., sold the old machine that was being replaced. The old machine had originally cost $4,000. Its book value at the time of the sale was $500. Record the sale of the old machine under the following conditions. The machine was sold for S(last three digits of your registration number) cash. The machine was sold for $350 cash. (5+5=10 Marks)