q1

At each calendar year-end, Mazie Supply Co. uses the percent of accounts receivable method to estimate bad debts. On December 31, 2013, it has outstanding accounts receivable of $55,000, and it estimates that 3% will be uncollectible

Prepare the adjusting entry to record bad debts expense for year 2013 under the assumption that the Allowance for Doubtful Accounts has
(a)	a $935 credit balance before the adjustment.
(b)	a $275 debit balance before the adjustment

Adjusting entries (all dated December 31, 2013).

q3

BMX Company has one employee. FICA Social Security taxes are 6.20% of the first $110,100 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.80% and SUTA taxes are 2.90% of the first $7,000 paid to its employee.

	Gross Pay through August		Gross Pay for September
a.	$	5,000	$	3,100

Prepare the employer